3M Company Second Quarter Earnings Preview

July 21, 2011

S&P 500 component 3M Company will unveil its latest earnings on Tuesday, July 26, 2011. 3M Co. is a global manufacturer, technology innovator and marketer of a variety of products.

3M Company Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.60 per share, a rise of 3.9% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.61. Between one and three months ago, the average estimate was unchanged, but has since dropped during the last month. For the year, analysts are projecting net income of $6.31 per share, a rise of 9.7% from last year.

Past Earnings Performance: The company topped forecasts last quarter after being in line with estimates the quarter prior. In the first quarter, it reported profit of $1.49 per share versus a mean estimate of $1.43. Two quarters ago, it reported net income of $1.27 per share.

Savvy Investing Tip: Our CHEAT SHEET investing framework recommends only stocks with two straight quarters of earnings growth. Learn More >>

Wall St. Revenue Expectations: On average, analysts predict $7.6 billion in revenue this quarter, a rise of 12.9% from the year ago quarter. Analysts are forecasting total revenue of $30.16 billion for the year, a rise of 13.1% from last year’s revenue of $26.66 billion.

Analyst Ratings: Analysts are bullish on this stock with 12 analysts rating it as a buy, one rating it as a sell and three rating it as a hold.

Key Stats:

Revenue has risen the past four quarters. Revenue increased 15.2% to $7.31 billion in first quarter. The figure rose 9.6% in the fourth quarter of the last fiscal year from the year earlier, climbed 11% in the third quarter of the last fiscal year from the year-ago quarter and 17.7% in the second quarter of the last fiscal year.

The company has now been profitable for the last eight quarters, and for the last four, profit has risen year over year by an average of 18.6%. The quarter with the biggest boost was the second quarter of the last fiscal year, which saw a 43.2% surge.

Competitors to Watch: General Electric Company , Danaher Corporation , Johnson & Johnson , DENTSPLY Intl. Inc. , Tyco International Ltd. , Carlisle Companies, Inc. , Honeywell Intl. Inc. , Siemens AG , and E.I. du Pont de Nemours & Co. .

Stock Price Performance: During May 23, 2011 to July 20, 2011, the stock price had risen $1.76 (1.9%) from $92.49 to $94.25. The stock price saw one of its best stretches over the last year between April 18, 2011 and April 28, 2011 when shares rose for eight-straight days, rising 6.3% (+$5.75) over that span. It saw one of its worst periods between April 28, 2011 and May 5, 2011 when shares fell for six-straight days, falling 2.4% (-$2.30) over that span. Shares are up $8.97 (+10.5%) year to date.

(Source: Xignite Financials)

Get Actionable Investing Insights: Check Out Wall St. Cheat Sheet’s newest Feature Trades of the Month!