3M earnings exceed expectations given sturdy gross sales of private security gear
Traders wearing masks arrive on Wall Street in New York City before the opening bell on the New York Stock Exchange (NYSE) on May 26, 2020.
Johannes Eisele | AFP | Getty Images
3M reported third quarter results on Tuesday that exceeded analysts’ expectations due to strong sales of personal safety and healthcare devices.
Here’s how the manufacturing giant’s results went, according to Wall Street estimates:
- EPS: $ 2.43 per share versus a refinitive estimate of $ 2.26 per share
- Revenue: $ 8.35 billion versus $ 8.32 billion expected
The company’s shares traded flat after the pre-market results were released.
Security and Industrial sales rose 6.9% year over year to $ 3 billion, beating a FactSet estimate of $ 2.93 billion, according to 3M. Growth was driven by sales in the personal safety, roofing granules, and automotive aftermarket, according to the company.
Sales in 3M’s healthcare segment grew more than 25% to $ 2.2 billion, driven by growth in medical solutions, separation and cleaning, and oral care devices. According to FactSet, analysts expect healthcare sales of $ 1.36 billion.
“Our third quarter performance again demonstrated the strength of the 3M model as we performed well, served customers and continued to fight the pandemic,” CEO Mike Roman said in a statement. “While economic uncertainty and challenges from the COVID-19 pandemic remain, we have returned to positive organic revenue growth that has improved sequentially across companies and regions.”
The company also announced that operating cash flow was $ 2.5 billion, up 23% from the same period last year.
Third quarter sales in 3M’s transportation and electronics division decreased 7.4% to $ 2.3 billion. The company also expects October sales to range between flat and low single-digit growth.
3M’s shares have fallen more than 5% since the start of the year, trailing the S&P 500. In 2020, the broader market index increased by 5.3%.
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