3M Co. (MMM) Tops Q3 EPS by 12c, Beats on Revenues; Boosts FY17 EPS Guidance Above Consensus
3M Co. (NYSE: MMM) reported Q3 EPS of $2.33, $0.12 better than the analyst estimate of $2.21. Revenue for the quarter came in at $8.2 billion versus the consensus estimate of $7.93 billion.
“Coming off a strong first half, our team delivered an even more robust performance in the third quarter – marked by an eight percent increase in earnings per share, and seven percent organic growth that was positive across all business groups and geographic areas,” said Inge G. Thulin, 3M’s chairman, president and chief executive officer. “We also expanded margins to 25 percent, while investing for the future and returning significant cash to our shareholders.”
As a result of strong performance through the first nine months, 3M increased its guidance for 2017. The company now forecasts organic local-currency sales growth of 4 to 5 percent, up from previous guidance of 3 to 5 percent. 3M expects earnings in the range of $9.00 to $9.10 per share – up 10 to 12 percent year-on-year – versus a prior expectation of $8.80 to $9.05.
Third-Quarter Highlights:
- Sales of $8.2 billion, up 6.0 percent year-on-year
- Organic local-currency sales growth of 6.6 percent; growth in all business groups and across all geographic areas
- GAAP EPS of $2.33, up 8.4 percent year-on-year; operating margins of 25.0 percent
- Returned $1.1 billion to shareholders via dividends and gross share repurchases
- Updating 2017 full-year outlook: GAAP EPS of $9.00 to $9.10, up 10 to 12 percent year-on-year, versus prior range of $8.80 to $9.05
GUIDANCE:
3M Co. sees FY2017 EPS of $9.00-$9.15, versus the consensus of $8.96.
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