With operations spread across 70 countries worldwide, diversified technology firm 3M Company (MMM) offers dynamic growth opportunities in a broad range of sectors with its flexible product lines. Portfolio management, investment in innovation and business transformation are the three key levers on which the company intends to focus moving forward. 3M also aims to continue investing in capital expenditures and research and development to support organic growth as it aims a capital structure strategy and increased capital deployment.
However, given its international presence, adverse foreign currency translations are likely to affect the company’s ability to realize projected growth rates in its sales and earnings. As the extent of competition is increasing over time, investors have been eagerly awaiting for the company’s latest earnings report. In the last four trailing quarters, MMM has managed to beat the earnings only twice with a positive average earnings surprise of 0.54%.
Currently, MMM has a Zacks Rank #3 (Hold), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: MMM Miss on earnings. Our consensus called for EPS of $1.92, and the company reported EPS of $1.85
Revenue: Revenues missed. MMM posted revenues of $7,578 million, compared to our consensus estimate of $7,820 million.
Key Stats to Note: 3M has been making efforts to reposition its portfolio by divesting assets that no longer fit its corporate strategy and indulge in investments which are more in tune with it. Recently, the company announced its intention to acquire Polypore’s Separations Media business for $1.0 billion which will enhance its existing filtration platform.
Stock Price: Shares prices decreased in pre-market trading with flat outlook.
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