3 key takeaways from 3M’s first-quarter earnings report

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Updated on Feb 14, 2023

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3M tops analysts' estimates for earnings and revenue in the first quarter.
The American multinational forecasts up to 8% growth in sales this year.
3M shares were more than 1% down in premarket trading on Tuesday.

The 3M Company (NYSE: MMM) reported its financial results for the fiscal first quarter on Tuesday that beat Wall Street estimates as demand for its N95 face masks remained robust due to the ongoing Coronavirus pandemic. 3M also confirmed its guidance for the full year on Tuesday.

1. Financial performance

3M said that its net income in the first quarter printed at £1.16 billion that translates to £1.99 per share. In the same quarter last year, its net income was capped at a lower £940 million, or £1.63 per share.

Adjusted for one-time items, the American multinational earned £1.99 per share in Q1. 3M generated £6.36 billion of sales in the recent quarter that represents a 9.6% annualised growth.

According to FactSet, experts had forecast the company to post £6.07 billion of sales in the first quarter. Their estimate for adjusted per-share earnings stood at a lower £1.65. In the prior quarter (Q4), 3M had recorded £6.28 billion of sales.

2. Sales from individual business segments

3M generated £1.58 billion of sales (6.8% increase) from its healthcare segment, £2.37 billion of sales (13.7% increase) from the safety and industrial segment, £1.01 billion of sales (9.8% increase) from the consumer segment, and £1.80 billion of sales (13.1% increase) from the transportation and electronics segments in Q1.

All businesses of the American multinational performed better than expected in the recent quarter.

3. Guidance for the full financial year

For fiscal 2021, 3M forecasts its per-share earnings to fall in the range of £6.61 to £6.97. The Saint Paul-based company expects up to 8% growth in sales this year.

Chief Executive Mike Roman commented on the earnings report on Tuesday and said:

“Our four industry-leading businesses are delivering strong results, while we accelerate 3M’s digital transformation and sustainability efforts with significant new goals to improve air and water quality.”

In separate news from the United States, package delivery company United Parcel Service also published its quarterly financial results on Tuesday.

3M shares that you can learn to buy online here were reported more than 1% down in premarket trading on Tuesday. The stock is now exchanging hands at £141.88 per share. In comparison, it had started the year 2020 at a per-share price of a lower £123.55.

At the time of writing, the NYSE-listed company is valued at £83.15 billion and has a price to earnings ratio of 21.59.