3M Co. (MMM) Beats Q4 Earnings on Record Revenues - Tale of the Tape
With operations spread across 70 countries worldwide, diversified technology firm 3M Company (MMM) offers dynamic growth opportunities in a broad range of sectors with its flexible product lines. Portfolio management, investment in innovation and business transformation are the three key levers on which the company intends to focus moving forward. 3M also aims to continue investing in capital expenditures and research and development to support organic growth as it aims a capital structure strategy and increased capital deployment.
However, given its international presence, adverse foreign currency translations are likely to affect the company’s ability to realize projected growth rates in its sales and earnings. As the extent of competition is increasing over time, investors have been eagerly awaiting for the company’s latest earnings report.
Currently, MMM has a Zacks Rank #3 (Hold), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: MMM beat on earnings. Our consensus called for EPS of $1.79, and the company reported EPS of $1.81
Revenue: Revenues missed. MMM posted revenues of $7,719 million, compared to our consensus estimate of $7,779 million.
Key Stats to Note: 3M expects to invest between $5 billion and $10 billion for acquisitions through 2017. For the five-year period from 2013−17, the company expects to record average earnings per share growth of 9%−11% per year, average organic sales growth of 4%−6% per year, a 20% return on invested capital and 100% conversion of net income to free cash flow. The company has been making efforts to reposition its portfolio by divesting assets that no longer fit its corporate strategy and indulge in investments which are more in tune with it.
Stock Price: Shares prices remained flat in pre-market trading following the earnings beat at the time of writing.
Check back our full write up on this MMM earnings report later
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