3M Company Earnings: Profit Increases Again

Falling revenue did not prevent S&P 500 (NYSE:SPY) component 3M Company (NYSE:MMM) from reporting a profit boost in the second quarter. 3M is a global manufacturer, technology innovator, and marketer of a variety of products.

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3M Company Earnings Cheat Sheet

Results: Net income for the diversified operations rose to $1.17 billion ($1.66 per share) vs. $1.16 billion ($1.60 per share) in the same quarter a year earlier. This marks a rise of 0.6% from the year-earlier quarter.

Revenue: Fell 1.9% to $7.53 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: 3M Company was about in line with expectations as the mean analyst estimate of $1.65 per share. It fell short of the average revenue estimate of $7.79 billion.

Quoting Management: “Our team performed very well in the quarter, delivering excellent productivity and record second-quarter earnings,” said Inge G. Thulin, 3M chairman, president and chief executive officer. “We achieved these results through outstanding factory efficiency and cost discipline throughout the organization.”Thulin continued, “Going forward, we will keep driving to achieve strong earnings and cash flow. At the same time we will expand 3M’s customer relevance through strategic investments in manufacturing, innovation and commercialization.”

Key Stats:

The company has now seen its net income increase for three consecutive quarters. In the first quarter, net income rose 4.1% and in the fourth quarter of the last fiscal year, the figure rose 2.8%.

A year-over-year revenue decrease last quarter breaks a four-quarter streak of revenue increases. The best quarter in that span was the second quarter of the last fiscal year, which saw revenue rise 14.1%.

For three consecutive quarters, the company has topped analyst estimates. It beat the mark by 11 cents in the first quarter and by 4 cents in the fourth quarter of the last fiscal year.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the third quarter is $1.67 per share, up from $1.65 ninety days ago. For the fiscal year, the average estimate has moved up from $6.30 a share to $6.41 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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