Categories AlphaGraphs, Earnings, Other Industries

3M stock drops on weak Q3 results, guidance cut

3M Co. (MMM) reported an 8% increase in earnings for the third quarter helped by stronger margins and lower income taxes provision. However, the bottom line missed analysts’ expectations. The industrial mammoth lowered its earnings guidance for the full year 2018. Following this, the stock dipped over 6% in the premarket session.

Net income rose 8% to $1.54 billion and earnings increased 11% to $2.58 per share. Sales inched down 0.2% to $8.2 billion.

Organic local-currency sales increased 1.3% while acquisitions, net of divestitures, increased sales by 0.2%. Foreign currency translation decreased sales by 1.7% year-on-year.

3M Company third quarter 2018 Earnings Infographic
3M Q3 2018 Earnings Infographics

Total sales grew 7% in Safety and Graphics helped by growths in personal safety, transportation safety, and commercial solutions. Industrial sales were flat as declines in automotive aftermarket offset growths in advanced materials, automotive and aerospace, and industrial adhesives and tapes.

Health Care sales fell 2.8% on the decline in drug delivery. Electronics and Energy sales dropped 4.8% due to decreases in EMEA. Consumer sales decreased by 3.4% due to declines in stationery and office supplies, home care, and consumer healthcare.

On a geographic basis, total sales grew 1.6% in the Asia Pacific and 1.3% in the US, while total sales declined 3.9% in EMEA and 5.5% in Latin America/Canada.

Looking ahead into the full year 2018, the company lowered its GAAP earnings guidance to the range of $8.78 to $8.93 per share from the prior estimate range of $9.08 to $9.38 per share. Adjusted EPS outlook was reduced to the range of $9.90 to $10.00 from the previous range of $10.20 to $10.45.

In addition, 3M now expects its full-year organic local-currency sales growth of about 3% compared to the prior estimate range of 3% to 4%. Free cash flow conversion forecast was lowered to the range of 90% to 95% from the previous outlook range of 90% to 100%.

Shares of 3M ended Monday’s regular session up 0.76% at $201.36 on the NYSE. The stock has fallen over 14% in the year so far and over 9% in the past year.

 

Listen to publicly listed companies’ earnings conference calls along with the edited closed caption text.

Most Popular

Earnings Preview: Home Depot’s Q3 report likely to reflect weak consumer demand

The US housing industry has been mostly resilient to headwinds like economic uncertainties so far this year. However, housing activity cooled in recent months as high mortgage rates and inflation

Take-Two Interactive (TTWO) will report Q2 2025 earnings this week, a few points to note

Shares of Take-Two Interactive Software, Inc. (NASDAQ: TTWO) stayed red on Monday. The stock has gained 16% over the past three months. The gaming company is set to report its second

Earnings Summary: Highlights of Loews Corporation’s (L) Q3 2024 report

Loews Corporation (NYSE: L), a diversified company with businesses in the insurance, energy, hospitality, and packaging industries, on Monday reported higher revenue and profit for the third quarter of 2024.

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top