Categories Analysis, Earnings, LATEST, Other Industries

Earnings Preview: Raw material costs likely to weigh on 3M Q3 results

3M Company (MMM) is scheduled to report earnings results for the third quarter of 2018 on Tuesday, October 23. Analysts expect the company to report earnings of $2.70 per share on revenues of $8.4 billion. This would reflect a growth of 3% in revenue and 15.9% in earnings on a year-over-year basis.

The company has never missed market expectations in the past four quarters. Results have either matched or topped estimates and can be expected to do the same for the to-be reported quarter.

For the third quarter, 3M is expected to see year-over-year revenue growth across all its segments. Other factors that could benefit the company include strong products, strategic portfolio reviews and innovation as well as stable end-market demand.

The factors that could hurt 3M include tough competition, negative impacts from foreign currency and higher expenses. The company can expect continued pressure from increases in raw material costs for the third quarter and the foreseeable future.

In the second quarter, 3M delivered better-than-expected results, with a 7% increase in revenue and a 19% improvement in EPS. The revenue growth was driven by a 15.8% sales increase in the safety and graphics business. The company also recorded a benefit of $0.48 per share from the divestiture of its communication markets business in the quarter.

3M reports 7.4% rise in revenue

Last quarter, 3M updated its full-year 2018 earnings guidance to reflect the impact from the divestiture. GAAP EPS is expected to be $9.08 to $9.38 while adjusted EPS is expected to be $10.20 to $10.45.

3M’s shares have dropped more than 14% year to date. Looking at the past one month, the stock is down 5%.

 

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

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