Industrial conglomerate 3M (NYSE: MMM) will be announcing earnings results this Tuesday morning. Here’s what to look for.
3M met analysts’ revenue expectations last quarter, reporting revenues of $6.00 billion, up 3.9% year on year. It was a slower quarter for the company, with a slight miss of analysts’ organic revenue estimates and full-year EPS guidance slightly missing analysts’ expectations.
Is 3M a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting 3M’s revenue to grow 4% year on year, improving from the 2.3% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. 3M rarely misses Wall Street’s revenue estimates.
Looking at 3M’s peers in the industrial machinery segment, some have already reported their Q2 results, giving us a hint as to what we can expect. GE Aerospace delivered year-on-year revenue growth of 24.5%, beating analysts’ expectations by 6%, and Worthington reported revenues up 16.9%, falling short of estimates by 4%. GE Aerospace traded down 3.2% following the results while Worthington’s stock price was unchanged.
Read our full analysis of GE Aerospace’s results here and Worthington’s results here.
Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the industrial machinery stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.9% on average over the last month. 3M is down 2.2% during the same time and is heading into earnings with an average analyst price target of $171.49 (compared to the current share price of $159.63).
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