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3M's (MMM) November Sales Improve Y/Y in High-Single Digits

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3M Company (MMM - Free Report) yesterday discussed its sales performance for November 2020. Total sales in the month expanded 8% year over year, driven by strength across segments and geographies served.

It is worth noting here that sales grew 3% from the year-ago month in October.

Inside the Headlines

As noted, the company’s sales in November totaled $2.9 billion. Organically, monthly sales increased 7% year over year, while divestitures had an adverse impact of 1% on top-line results. The impact of the movements in foreign currencies was a positive 2% on a year-over-year basis.

On a geographical basis, 3M’s sales in the Americas grew 9% year over year or expanded roughly 11% on an organic basis. Notably, local-currency organic sales increased 13% in the United States. Further, Europe, Middle East and Africa’s sales improved 10% year over year or 7% organically.

Sales in the Asia Pacific were up 5% from the year-ago month or were flat organically. Notably, organic sales (local currency) in China expanded 13%, while were down 5% in Japan.

On a segmental basis, the company’s sales improved 16% year over year in Safety and Industrial, 5% in Health Care, 16% in Consumer, and 3% in Transportation and Electronics. On an organic local-currency basis, sales were up 14% in Safety and Industrial, 15% in Consumer, 7% in Health Care, and 1% in Transportation and Electronics.

3M noted that it generated sales of $5.7 billion in the first two months of the fourth quarter of 2020. The company anticipates the full quarter’s sales to total $8.2-$8.4 billion amid the prevalent uncertainties related to the pandemic.

The Zacks Consensus Estimate for 3M’s fourth-quarter revenues is pegged at $8.3 billion, suggesting an increase of 1.7% from the year-ago reported number.

Zacks Rank, Price Performance, Earnings Estimate Trend and Peers

With $100.4-billion market capitalization, 3M currently carries a Zacks Rank #2 (Buy). The pandemic-induced demand for respirators, solid product offerings, inorganic actions and shareholder-friendly policies are anticipated to prove beneficial for the company. However, the lingering impacts of the challenges related to the pandemic are still concerning.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past three months, 3M’s shares have gained 2.1% compared with the industry’s growth of 19.7%.




 

In the past 60 days, the Zacks Consensus Estimate for the company’s earnings is pegged at $8.61 for 2020 and $9.42 for 2021, reflecting growth of 3.4% and 4.3% from the respective 60-day-ago figures. Also, the consensus estimate for the fourth quarter has been raised by 0.9% to $2.25.    

3M Company Price and Consensus

 

3M Company Price and Consensus

3M Company price-consensus-chart | 3M Company Quote

The company competes with other players in the same industry or same line of businesses including Danaher Corporation (DHR - Free Report) , Carlisle Companies Incorporated (CSL - Free Report) and Honeywell International Inc. (HON - Free Report) .

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