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3M Second Quarter Earnings
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3M Company (NYSE:MMM) announced its results for the most recent quarter on July 26, 2012. 3M is a global manufacturer, technology innovator, and marketer of a variety of products.
Investors care about earnings because they drive stock prices. Strong earnings generally result in the stock price moving up and vice versa. SEE: Everything Investors Need To Know About Earnings
The Numbers: 3M posted an EPS above analyst expectations, despite revenues falling short of predictions. The company reported $1.66 per share versus the $1.65 per share estimate and revenues of $7.53 billion versus the $7.79 billion estimate. EPS rose 3.7% while revenue declined 1.9% from the same period last year. Slumping revenue in the last quarter ends 3M's streak of four consecutive quarters of revenue increases. 3M reported net income of $1.17 billion during the second quarter. According to the reported number, this is up 0.6% from last year's figures. Last quarter marked the third in a row of rising net income.
Management Quote: "Our team performed very well in the quarter, delivering excellent productivity and record second-quarter earnings," said Inge G. Thulin, 3M chairman, president and chief executive officer. "We achieved these results through outstanding factory efficiency and cost discipline throughout the organization."Thulin continued, "Going forward, we will keep driving to achieve strong earnings and cash flow. At the same time we will expand 3M's customer relevance through strategic investments in manufacturing, innovation and commercialization."
A Look Back: Net income has increased 1.9% year-over-year on average across the last five quarters. The biggest gain came in the first, when income climbed 4.1% from the year-earlier quarter.
Looking Ahead: For next quarter, analysts have a more positive outlook about the company's expected results. The average estimate for the third quarter is $1.67 per share, up from $1.65 90 days ago. When analyst increase earnings estimates investors can assume business has been stronger than first thought and is an encouraging sign for investors. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. The average estimate for the fiscal year is $6.41 per share, a rise from $6.30 90 days ago.
Investors care about earnings because they drive stock prices. Strong earnings generally result in the stock price moving up and vice versa. SEE: Everything Investors Need To Know About Earnings
The Numbers: 3M posted an EPS above analyst expectations, despite revenues falling short of predictions. The company reported $1.66 per share versus the $1.65 per share estimate and revenues of $7.53 billion versus the $7.79 billion estimate. EPS rose 3.7% while revenue declined 1.9% from the same period last year. Slumping revenue in the last quarter ends 3M's streak of four consecutive quarters of revenue increases. 3M reported net income of $1.17 billion during the second quarter. According to the reported number, this is up 0.6% from last year's figures. Last quarter marked the third in a row of rising net income.
Management Quote: "Our team performed very well in the quarter, delivering excellent productivity and record second-quarter earnings," said Inge G. Thulin, 3M chairman, president and chief executive officer. "We achieved these results through outstanding factory efficiency and cost discipline throughout the organization."Thulin continued, "Going forward, we will keep driving to achieve strong earnings and cash flow. At the same time we will expand 3M's customer relevance through strategic investments in manufacturing, innovation and commercialization."
A Look Back: Net income has increased 1.9% year-over-year on average across the last five quarters. The biggest gain came in the first, when income climbed 4.1% from the year-earlier quarter.
Looking Ahead: For next quarter, analysts have a more positive outlook about the company's expected results. The average estimate for the third quarter is $1.67 per share, up from $1.65 90 days ago. When analyst increase earnings estimates investors can assume business has been stronger than first thought and is an encouraging sign for investors. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. The average estimate for the fiscal year is $6.41 per share, a rise from $6.30 90 days ago.
by
Investopedia Staff
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