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Valued at a market cap of almost $71 billion, 3M Company (MMM) provides diversified technology services and serves a diversified customer base. The Saint Paul, Minnesota-based company primarily operates in the fields of industry, worker safety, and consumer goods. It is expected to announce its fiscalQ4 earnings results on Tuesday, Jan. 28.
Ahead of this event, analysts expect the tech company to report a profit of $1.65 per share, significantly down 31.8% from $2.42 per share in the year-ago quarter. The company has a solid track record of consistently beating Wall Street's bottom-line estimates in the last four quarters. In Q3, MMM’s adjusted EPS of $1.98 outpaced the consensus estimates by a margin of 2.6%.
For fiscal 2024, analysts expect MMM to report an EPS of $7.27, down 21.3% from $9.24 in fiscal 2023. Nonetheless, in fiscal 2025, EPS is expected to grow 7.8% year-over-year to $7.84.
Shares of MMM have rallied 46.7% over the past 52 weeks, massively outpacing both the S&P 500 Index's ($SPX) 25.8% rise and the Industrial Select Sector SPDR Fund’s (XLI) 18.7% return over the same time frame.
On Oct. 22, shares of MMM plunged 2.3% following its Q3 earnings release despite delivering better-than-expected adjusted earnings of $1.98 per share and adjusted revenues of $6.1 billion. The company’s top-line figure increased 1.5% from the year-ago quarter, with adjusted organic sales up 1% year-over-year. Moreover, it reported an 18% annual growth in its adjusted earnings. Noting its strong performance, the company raised its full-year 2024 earnings guidance to $7.20 to $7.30.
However, a decline in sales in two of its three reportable segments, fueled by a drop in global demand for vehicles and a decrease in consumer spending, might have lowered investor confidence and led to its downward price movement.
Wall Street analysts are moderately optimistic about 3M Company’s stock, with a "Moderate Buy" rating overall. Among 16 analysts covering the stock, nine recommend "Strong Buy," four suggest “Hold,” one indicates a “Moderate Sell,” and two suggest “Strong Sell” ratings.
The average analyst price target for MMM is $151.12, indicating a modest 13.8% potential upside from the current levels.
