U.S. Markets close in 34 mins
  • S&P 500

    3,836.91
    -5.03 (-0.13%)
     
  • Dow 30

    31,906.73
    +410.43 (+1.30%)
     
  • Nasdaq

    12,657.87
    -262.28 (-2.03%)
     
  • Russell 2000

    2,199.02
    +6.81 (+0.31%)
     
  • Crude Oil

    64.70
    -1.39 (-2.10%)
     
  • Gold

    1,681.40
    -17.10 (-1.01%)
     
  • Silver

    25.25
    -0.04 (-0.17%)
     
  • EUR/USD

    1.1855
    -0.0069 (-0.5809%)
     
  • 10-Yr Bond

    1.5960
    +0.0420 (+2.70%)
     
  • Vix

    25.80
    +1.14 (+4.62%)
     
  • GBP/USD

    1.3825
    -0.0003 (-0.0207%)
     
  • USD/JPY

    108.8710
    +0.4890 (+0.4512%)
     
  • BTC-USD

    50,947.24
    +92.13 (+0.18%)
     
  • CMC Crypto 200

    1,039.92
    +15.71 (+1.53%)
     
  • FTSE 100

    6,719.13
    +88.61 (+1.34%)
     
  • Nikkei 225

    28,743.25
    -121.07 (-0.42%)
     

3M Earnings Beat Estimates Due to Pandemic Demands

  • Oops!
    Something went wrong.
    Please try again later.
GuruFocus.com
·2 min read
  • Oops!
    Something went wrong.
    Please try again later.

- By Graham Griffin

Diversified production company 3M Co. (NYSE:MMM) has released profitable earnings on the back of increased demand for health care products during the ongoing pandemic.

The company reported earnings per share of $2.38 for the fourth quarter, which beat estimates that placed earnings between $2.04 and $2.28 per share. Net sales totalled $8.58 billion for the quarter, representing a 5.8% increase.


3M Earnings Beat Estimates Due to Pandemic Demands
3M Earnings Beat Estimates Due to Pandemic Demands

3M saw success across all of its individual divisions, noting the success of its health care division. Health care benefitted specifically from the sale of protective masks, including the company's highly demanded N95 mask, throughout 2020. Sales for the health care division were up 5.4% at $2.3 billion for the quarter.

The company's safety and industrial division brought sales up 12.7% during the quarter to lead the charge. Consumer sales also saw a large increase of 10.6% to a total of $1.4 billion and transportation and electronics saw a small 2.3% increase to $2.3 billion.

Operating cash flow came out to $2.5 billion for the quarter and adjusted to $2.1 billion after deductions. 3M was also able to pay out $848 million in cash dividends to shareholders during the quarter while decreasing total debt by 4%.

3M is expecting to increase sales throughout 2021 in the range of 5% to 8%. They are also pushing for earnings per share of $9.20 to $9.70 and have laid plans for environmental, social and governance improvements throughout the following year.

On Jan. 26, the stock was trading at $176.26 per share with a market cap of $101.30 billion. According to the GF Value Line, the stock is trading at fair value.

3M Earnings Beat Estimates Due to Pandemic Demands
3M Earnings Beat Estimates Due to Pandemic Demands

Top gurus invested in 3M include Mario Gabelli (Trades, Portfolio), First Eagle Investment (Trades, Portfolio), Ken Fisher (Trades, Portfolio), Tweedy Browne (Trades, Portfolio) and Jeremy Grantham (Trades, Portfolio).

3M Earnings Beat Estimates Due to Pandemic Demands
3M Earnings Beat Estimates Due to Pandemic Demands

Disclosure: Author owns no stocks mentioned.

Read more here:

  • GameStop Sees Another Surge Well Above $100 Per Share

  • Leon Cooperman Leans Out Ocwen Financial Holding

  • United Airlines Suffering Losses Through the 4th Quarter



Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here

This article first appeared on GuruFocus.