3M Co(NYSE: MMM) in the first quarter of FY 17 has posted better-than-expected quarterly results and raised its 2017 profit forecast, boosted by the growth in its core industrial unit and a resurgent electronics business. The company has now expected the 2017 earnings per share in the range of $8.70 to $9.05, compared with its earlier forecast of $8.45 to $8.80 of earnings per share. MMM has also projected local-currency sales growth to be between 2% and 5%, up from a previous range of 1% to 3%.
3M in the first quarter of FY 17 reported the adjusted earnings per share of $2.16, beating the analysts’ estimates for the adjusted earnings per share of $2.06. The company had reported the adjusted revenue growth of 3.7 percent to $7.69 billion in the first quarter of FY 17, beating the analysts’ estimates for revenue of $7.47 billion. 3M has experienced sales gains in every part of the world and in four of its five business segments. By comparison, only two of the segments had seen the sales growth in the last three months of 2016.
Additionally, the company’s industrial products business segment, which is the largest by sales and as profit contributor, has reported a 4 percent gain in sales and a slight gain in operating profit. Its next-largest business segment, safety, and graphics, has reported a 3.4 percent gain in sales and an 11 percent jump in operating profit. The company had last month announced the $2 billion acquisition of Scott Safety, a North Carolina-based maker of self-contained breathing apparatus systems, that will add to the size of its safety business when complete later this year. The health care segment had posted 2.3 percent increase in the sales and a 5 percent fall in operating profit in the first quarter. Further, the company’s electronics and energy unit has remained its fastest-growing with an 11 percent jump in sales and a 15 percent gain in operating profit. Its consumer division, which handles the products most people see in stores, has posted a 0.7 percent fall in sales and a nearly 7 percent fall in operating profit.
3M has paid $702 million in cash dividends to shareholders and repurchased $690 million of its own shares during the first quarter.
3M stock has risen 15.16% in the last one year (source: Google Finance). According to tipranks.com, 4 analysts has covered the stock while recommending a “Strong Buy” which has an average price target of $202.50. The stock rose over 0.3% this morning given the decent results. (as of 12:12PM EDT on April 25th, 2017; Source: Google finance)