Free Research Report as 3M Company’s Quarterly Earnings Advanced 15.74%
Stock Monitor: Colfax Post Earnings Reporting
LONDON, UK / ACCESSWIRE / May 08, 2018 / If you want access to our free earnings report on 3M Co. (NYSE: MMM), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=MMM. On April 24, 2018, 3M reported financial results for the first quarter of 2018 ending March 31, 2018. The Company surpassed analysts' consensus estimates for earnings as well as revenue in Q1 FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
3M's total revenues reached $8.28 billion for Q1 FY18, reflecting an increase of 7.72% from $7.69 billion in Q1 FY17 led by growth across all business groups. The reported revenue number exceeded analysts' consensus estimates of $8.08 billion.
In the quarter under review, organic local-currency sales increased 2.80% while acquisitions, net of divestitures, increased sales by 0.70% and foreign currency translation increased sales by 4.20% on a y-o-y basis. On a geographic basis, 3M's total sales grew 13.70% in EMEA (Europe, Middle-East, and Africa), 10% in Asia/Pacific, 4.3% in Latin America/Canada, and 3.5% in the US.
3M incurred total operating expenses of $7.27 billion in Q1 FY18, 22.35% higher than the $5.94 billion reported in Q1 FY17. In the quarter under review, the Company's cost of sales advanced 9.12% to $4.24 billion while its selling, general, and administrative (SG&A) expenses increased 59.42% to $2.57 billion on a y-o-y basis. 3M's operating income fell 42.19% to $1.01 billion in Q1 FY18 from the $1.74 billion reported in Q1 FY17.
Net income attributable to 3M for the quarter ending March 31, 2018 was $602 million, compared to $1.32 billion in the same period last year. The Company had a diluted income per share of $0.98 in the reported quarter from $2.16 in the previous year's same quarter. The reported earnings included charges due to the enactment of the Federal Tax Cuts and Jobs Act, and a pre-tax charge from the lawsuit with the State of Minnesota. 3M's adjusted diluted earnings per share (DEPS), excluding these non-recurring items, was $2.50 in Q1 FY18, up 15.74% from $2.16 in Q1 FY17. This was in-line with analysts' consensus estimates.
3M's Segment Details
During Q1 FY18, the Industrial segment's net revenues were $3.14 billion, up 7.08% on a y-o-y basis. This segment had an operating income of $719 million in Q1 FY18 compared to $670 million in Q1 FY17, reflecting an increase of 7.31%.
The Safety and Graphics segment reported revenues of $1.78 billion in Q1 FY18, up 15.03% from prior year's comparable quarter. This segment had an operating income of $483 million in the quarter under review, an increase of 21.05% from $399 million in the previous year's same quarter.
For Q1 FY18, the Health Care segment generated revenues of $1.54 billion, 7.04% higher than the previous year's corresponding quarter. This segment had an operating income of $460 million in Q1 FY18, up 7.23% from $429 million in Q1 FY17.
During Q1 FY18, the Electronics and Energy segment's net revenues were $1.35 billion, up 4.57% on a y-o-y basis. This segment's operating income advanced 31.64% to $337 million in Q1 FY18 from $256 million in Q1 FY17.
The Consumer segment reported revenues of $1.13 billion in Q1 FY18, up 5.03% from prior year's same quarter. This segment had an operating income of $218 million in the quarter under review, 2.24% lower than the $223 million reported in the previous year's comparable quarter.
Cash Matters
3M had cash and cash equivalents of $3.49 billion as on March 31, 2018, an increase of 14.35% from $3.05 billion as on December 31, 2017. The Company's long-term debt advanced 0.95% to $12.21 billion at the end of Q1 FY18 from $12.10 billion at the end of Q4 FY17.
3M's net cash flow from operating activities was $143 million in Q1 FY18 compared to $988 million in Q1 FY17.
3M spent $304 million on purchases of property, plant, and equipment in Q1 FY18, 5.92% higher than the $287 million in Q1 FY17. The Company distributed dividends of $810 million in the reported quarter, an increase of 15.38% from $702 million in the previous year's same quarter.
Outlook
3M updated its 2018 GAAP earnings expectations to be in the range of $8.68 to $9.03 per share. The Company expects its adjusted full-year 2018 earnings (excluding the impact of the TCJA-related expense and the legal settlement in Q1 FY18) to be in the range of $10.20 to $10.55 per share compared to the earlier expectations of $10.20 to $10.70 per share. Besides, the Company also updated its organic local-currency sales growth guidance to be in the range of 3% to 4% from the previous range of 3% to 5%.
Stock Performance Snapshot
May 07, 2018 - At Monday's closing bell, 3M's stock slightly rose 0.45%, ending the trading session at $200.26.
Volume traded for the day: 2.83 million shares.
Stock performance in the past twelve-month period – up 0.43%
After yesterday's close, 3M's market cap was at $119.42 billion.
Price to Earnings (P/E) ratio was at 25.05.
The stock has a dividend yield of 2.72%.
The stock is part of the Industrial Goods sector, categorized under the Diversified Machinery industry. This sector was up 0.8% at the end of the session.
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