3M earnings prime expectations amid sturdy personal-safety gear gross sales
Traders wearing masks arrive before the opening bell at the New York Stock Exchange (NYSE) on May 26, 2020 at Wall Street in New York City.
Johannes Eisele | AFP | Getty Images
Dow component 3M on Tuesday reported third-quarter results that beat analyst expectations on the back of strong personal-safety and health equipment sales.
Here’s how the manufacturing giant’s results fared comparted with Wall Street estimates:
- EPS: $2.43 per share vs. Refinitiv estimate of $2.26 per share
- Revenue: $8.35 billion vs. $8.32 billion expected
The company’s stock fell 1.5% in the premarket after the results were released.
3M said sales from its safety and industrial division rose 6.9% on a year-over-year basis to $3 billion, topping a FactSet estimate of $2.93 billion. The growth was driven by sales in personal safety, roofing granules, and automotive aftermarket, the company said.
Sales from 3M’s health-care segment popped more than 25% to $2.2 billion, driven by gains in medical solutions, separation and purification, and oral-care equipment. Analysts expected health-care sales to total $1.36 billion, according to FactSet.
“Our third-quarter performance demonstrated once again the strength of the 3M model as we executed well, served customers and continued to fight the pandemic,” CEO Mike Roman said in a statement. “Though economic uncertainty and challenges due to the COVID-19 pandemic remain, we returned to positive organic sales growth with sequential improvement across businesses and geographies.”
The company also said its operating cash flow came in at $2.5 billion, up 23% from the year-earlier period.
3M’s transportation and electronics division saw sales decline by 7.4% to $2.3 billion during the third quarter. The company also expects October sales to range between flat and and low single-digits growth.
Shares of 3M are down more than 5% year to date, lagging the S&P 500. In 2020, the broader market index as gained 5.3%.
Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.