Q2 Preview: Upside from Strong Quarter May Already Be Priced Into 3M (MMM) Shares
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Price: $178.96 +0.49%
Rating Summary:
15 Buy, 9 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
15 Buy, 9 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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3M Company (NYSE: MMM) will report second-quarter earnings Tuesday, July 26th before the market opens. Ahead of the results, traders are cautiously buying the stock; with less than two hours left in Monday's trading session, 3M shares are up 0.13 percent to $95.50.
Wall Street is currently anticipating quarterly earnings of $1.60 per share from 3M, with sales coming in around $7.6 billion. Last quarter the company posted EPS of $1.49 on sales of $7.31 billion. During the second quarter of 2010, 3M reported earnings of $1.54 per share on sales of $6.73 billion.
According to StreetInsider.com's EPS Insider History page, 3M has beat the Street by about 1.5 percent over the last three quarters.
Shares of 3M are up 10.5 percent so far in 2011, compared to a 6.7 percent rise in the S&P 500 over the same period.
Data from Bloomberg shows 14 analyst firms on the Street have a "buy" rating on 3M shares, five have a "hold" rating, and two have a "sell" rating. Analysts' price targets on the stock range from $88 to $120.
Analyst Commentary:
Wall Street is currently anticipating quarterly earnings of $1.60 per share from 3M, with sales coming in around $7.6 billion. Last quarter the company posted EPS of $1.49 on sales of $7.31 billion. During the second quarter of 2010, 3M reported earnings of $1.54 per share on sales of $6.73 billion.
According to StreetInsider.com's EPS Insider History page, 3M has beat the Street by about 1.5 percent over the last three quarters.
Shares of 3M are up 10.5 percent so far in 2011, compared to a 6.7 percent rise in the S&P 500 over the same period.
Data from Bloomberg shows 14 analyst firms on the Street have a "buy" rating on 3M shares, five have a "hold" rating, and two have a "sell" rating. Analysts' price targets on the stock range from $88 to $120.
Analyst Commentary:
- JPMorgan - Remains cautious into results, saying Street expectations have increased recently given strong stock outperformance. "TV data points show the inventory correction continuing in the second quarter, which could hurt sales, and margins, along with pressure in other areas of the tech chain, and a weak consumer/office environment." The firm believes execution related to price/cost and Japan are keys. Modeling for EPS of $1.50; JPMorgan recommends shorting the stock ahead of the report.
- Goldman Sachs - Recently reduced its quarterly EPS estimate from $1.74 to $1.66 "on lower organic revenue growth now +7% vs. prior +9%, with biggest changes in D&G and C&O on near-term consumer softness, and slightly more negative impact from Japan." Goldman expects 3M to "modestly" increase its FY11 outlook. Maintains Neutral rating.
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