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Valued at a market cap of $74.9 billion, 3M Company (MMM) operates in the diversified technology sector. Based in Saint Paul, Minnesota, it develops a wide range of innovative products across various industries, including safety, healthcare, consumer goods, and electronics. The company is expected to unveil its fiscal Q3 earnings results on Tuesday, Oct. 22.
Prior to the event, analysts anticipated the industrial giant to report a profit of $1.92 per share, down 28.4% from $2.68 per share in the same quarter last year. However, the company has consistently surpassed Wall Street's earnings projections over the last four quarters. In the most recent quarter, MMM exceeded the consensus estimate by a 16.3% margin.
For fiscal 2024, analysts expect MMM to report EPS of $7.22, down 21.9% from $9.24 in fiscal 2023. Nevertheless, looking forward to fiscal 2025, EPS is expected to rebound, growing by 8.7% year-over-year to $7.85.
Over the past 52 weeks, MMM's shares have climbed 80.1%, significantly outperforming the broader S&P 500 Index's ($SPX) 33.1% gain and the Industrial Select Sector SPDR Fund's (XLI) 34.7% increase over the same period.
3M stock soared over 22% on Jul. 26 due to stronger-than-expected Q2 adjusted EPS of $1.93 and total sales of $6.3 billion, driven by strategic cost-cutting, exits from less profitable lines, and price increases across product categories. The company also raised the low end of its full-year profit forecast to $7 per share - $7.30 per share and emphasized a shift toward high-growth sectors like automotive electrification and climate technology.
Analysts' consensus rating on 3M stock is cautiously optimistic, with a "Moderate Buy" overall rating. Out of 15 analysts covering the stock, opinions include seven "Strong Buys," five "Holds," one "Moderate Sell," and two "Strong Sells." This configuration is more bullish than three months ago, with five “Strong Buy” ratings on the stock.
As of writing, MMM is trading slightly below the average analyst price target of $136.07.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
