3M Fourth Quarter Earnings Sneak Peek

  Google+ | + More Articles
  • Like on Facebook
  • Share on Google+
  • Share on LinkedIn

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.2 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 2.47 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 15.6% to $6.59 billion while assets rose 2.9% to $14.49 billion.

Analyst Ratings: There are eight out of 13 analysts surveyed (61.5%) rating 3M a buy.

Key Stats:

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 4.1% in the first quarter and 0.6% in the second quarter before increasing again in the third quarter.

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 1.9% in the second quarter and dropped again in the third quarter.

Wall St. Revenue Expectations: Analysts predict a rise of 1.3% in revenue from the year-earlier quarter to $7.18 billion.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

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

More Articles About:

To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com

Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business