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What's in the Offing for 3M (MMM) This Earnings Season?
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3M Company (MMM - Free Report) is scheduled to release first-quarter 2022 results on Apr 26, before market open.
The company delivered better-than-expected results in the last four quarters, with the earnings surprise being 16.1%, on average. In the last reported quarter, its earnings of $2.31 per share surpassed the Zacks Consensus Estimate of $2.03.
Image Source: Zacks Investment Research
In the past three months, 3M’s shares have lost 12.1% compared with the industry’s decline of 3.9%.
Key Factors and Estimates for Q1
3M is expected to have benefited from its focus on innovation, digital capabilities and strength across its manufacturing, electronic materials, healthcare, IT and automotive end markets in the first quarter. The company’s solid product offerings, focus on operational execution and aim to generate healthy free cash flow are also likely to have positively impacted its operations.
An impressive demand in the home improvement market and a healthy consumer business are likely to have aided the company’s performance in the first quarter. The strengthening e-commerce business, investment in growth opportunities in electronics & software and personal safety arenas and synergistic gains from acquired assets are likely to have been tailwinds.
Despite strength in several end markets, the pandemic-related headwinds might have influenced 3M’s performance in the to-be-reported quarter. In fourth-quarter 2021, organic sales generated from disposable respirators decreased 25% year over year and 7% sequentially. The company anticipates lower respirator demand to have hurt its revenues by $100-$150 million in the first quarter.
The shortage of semiconductor chips and other supply-chain woes are likely to have affected 3M’s production volumes in the electronics and automotive OEM markets in the quarter. Inflation in logistics and raw material costs is expected to have weighed on margins and profitability. Also, high restructuring and research, development and other related expenses might have hurt its performance.
On a segmental basis, the Zacks Consensus Estimate for Safety and Industrial’s sales, pegged at $2,948 million, suggests a year-over-year decrease of 11.4% and a sequential fall of 3.8%. The consensus estimate of $2,116 million for Healthcare indicates a decline of 5.9% and a fall of 7% from the respective year-ago and quarter-ago reported numbers. For Consumer, the consensus estimate of $1,322 million suggests a fall of 3.7% from the year-ago reported number and 10.4% from the sequential figure. The consensus estimate for Transportation and Electronics is pegged at $2,303 million, suggesting a decline of 9% year over year. The figure is relatively stable with the quarter-ago reported number.
The Zacks Consensus Estimate for 3M’s first-quarter total revenues is pegged at $8,740 million, indicating a year-over-year decrease of 1.3% but sequential growth of 1.5%. The consensus estimate for the company’s earnings is pegged at $2.33, suggesting a year-over-year dip of 15.9% and a sequential increase of 0.9%.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case with the company, as you will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: 3M has an Earnings ESP of +0.14%, as the Most Accurate Estimate is pegged at $2.34, higher than the Zacks Consensus Estimate of $2.33.
Zacks Rank: 3M currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some companies that you may want to consider as, according to our model, these have the right combination of elements to beat on earnings in this reporting cycle.
Its earnings surprise in the last four quarters was 35.1%, on average. In the past 60 days, Carlisle’s earnings estimates have increased 0.5% for 2022. CSL’s shares have gained 10.9% in the past three months.
Eaton Corporation plc (ETN - Free Report) has an Earnings ESP of +0.85% and a Zacks Rank of 3, currently. ETN delivered a trailing four-quarter earnings surprise of 7%, on average.
Earnings estimates of ETN have decreased 0.7% for 2022 in the past 60 days. Its shares have declined 6.3% in the past three months.
AGCO Corporation (AGCO - Free Report) has an Earnings ESP of +0.93% and a Zacks Rank of 3, currently. Its earnings surprise in the last four quarters was 56.7%, on average.
In the past 60 days, AGCO’s earnings estimates have decreased 0.7% for 2022. The stock has rallied 19.2% in the past three months.
Image: Bigstock
What's in the Offing for 3M (MMM) This Earnings Season?
3M Company (MMM - Free Report) is scheduled to release first-quarter 2022 results on Apr 26, before market open.
The company delivered better-than-expected results in the last four quarters, with the earnings surprise being 16.1%, on average. In the last reported quarter, its earnings of $2.31 per share surpassed the Zacks Consensus Estimate of $2.03.
Image Source: Zacks Investment Research
In the past three months, 3M’s shares have lost 12.1% compared with the industry’s decline of 3.9%.
Key Factors and Estimates for Q1
3M is expected to have benefited from its focus on innovation, digital capabilities and strength across its manufacturing, electronic materials, healthcare, IT and automotive end markets in the first quarter. The company’s solid product offerings, focus on operational execution and aim to generate healthy free cash flow are also likely to have positively impacted its operations.
An impressive demand in the home improvement market and a healthy consumer business are likely to have aided the company’s performance in the first quarter. The strengthening e-commerce business, investment in growth opportunities in electronics & software and personal safety arenas and synergistic gains from acquired assets are likely to have been tailwinds.
Despite strength in several end markets, the pandemic-related headwinds might have influenced 3M’s performance in the to-be-reported quarter. In fourth-quarter 2021, organic sales generated from disposable respirators decreased 25% year over year and 7% sequentially. The company anticipates lower respirator demand to have hurt its revenues by $100-$150 million in the first quarter.
The shortage of semiconductor chips and other supply-chain woes are likely to have affected 3M’s production volumes in the electronics and automotive OEM markets in the quarter. Inflation in logistics and raw material costs is expected to have weighed on margins and profitability. Also, high restructuring and research, development and other related expenses might have hurt its performance.
On a segmental basis, the Zacks Consensus Estimate for Safety and Industrial’s sales, pegged at $2,948 million, suggests a year-over-year decrease of 11.4% and a sequential fall of 3.8%. The consensus estimate of $2,116 million for Healthcare indicates a decline of 5.9% and a fall of 7% from the respective year-ago and quarter-ago reported numbers. For Consumer, the consensus estimate of $1,322 million suggests a fall of 3.7% from the year-ago reported number and 10.4% from the sequential figure. The consensus estimate for Transportation and Electronics is pegged at $2,303 million, suggesting a decline of 9% year over year. The figure is relatively stable with the quarter-ago reported number.
The Zacks Consensus Estimate for 3M’s first-quarter total revenues is pegged at $8,740 million, indicating a year-over-year decrease of 1.3% but sequential growth of 1.5%. The consensus estimate for the company’s earnings is pegged at $2.33, suggesting a year-over-year dip of 15.9% and a sequential increase of 0.9%.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case with the company, as you will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: 3M has an Earnings ESP of +0.14%, as the Most Accurate Estimate is pegged at $2.34, higher than the Zacks Consensus Estimate of $2.33.
3M Company Price and EPS Surprise
3M Company price-eps-surprise | 3M Company Quote
Zacks Rank: 3M currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some companies that you may want to consider as, according to our model, these have the right combination of elements to beat on earnings in this reporting cycle.
Carlisle Companies Incorporated (CSL - Free Report) has an Earnings ESP of +2.56% and a Zacks Rank of 2, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Its earnings surprise in the last four quarters was 35.1%, on average. In the past 60 days, Carlisle’s earnings estimates have increased 0.5% for 2022. CSL’s shares have gained 10.9% in the past three months.
Eaton Corporation plc (ETN - Free Report) has an Earnings ESP of +0.85% and a Zacks Rank of 3, currently. ETN delivered a trailing four-quarter earnings surprise of 7%, on average.
Earnings estimates of ETN have decreased 0.7% for 2022 in the past 60 days. Its shares have declined 6.3% in the past three months.
AGCO Corporation (AGCO - Free Report) has an Earnings ESP of +0.93% and a Zacks Rank of 3, currently. Its earnings surprise in the last four quarters was 56.7%, on average.
In the past 60 days, AGCO’s earnings estimates have decreased 0.7% for 2022. The stock has rallied 19.2% in the past three months.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.