3M (NYSE:MMM) Posts Quarterly Earnings Results, Beats Estimates By $0.12 EPS

Key Points

• 3M beat quarterly earnings expectations: The company reported EPS of $2.50, exceeding the consensus estimate of $2.38 by $0.12. Its net margin was 11.90%, while return on equity reached 115.87%.
• Shares traded lower: 3M opened at $162.11 and declined 1.6%, with the stock trading between a 52-week range of $139.34 to $184.90.
• Dividend and analyst outlook: 3M maintained its quarterly dividend at $0.78 per share, representing a 1.9% yield. Analysts have a consensus “Hold” rating and an average price target of $181.71.

3M (NYSE:MMM - Get Free Report) announced its quarterly earnings results on Tuesday. The conglomerate reported $2.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.38 by $0.12, Zacks reports. 3M had a net margin of 11.90% and a return on equity of 115.87%.

3M Trading Down 1.6%

MMM opened at $162.11 on Tuesday. 3M has a fifty-two week low of $139.34 and a fifty-two week high of $184.90. The firm has a market capitalization of $83.60 billion, a PE ratio of 28.79, a P/E/G ratio of 2.30 and a beta of 0.99. The company has a debt-to-equity ratio of 3.63, a current ratio of 1.24 and a quick ratio of 0.91. The company's 50-day moving average is $169.59 and its 200 day moving average is $161.52.

3M Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, September 11th. Investors of record on Monday, August 24th were issued a $0.78 dividend. This represents a $3.12 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date was Monday, August 24th. 3M's dividend payout ratio is currently 55.42%.

Insider Transactions at 3M

In other 3M news, insider Karin Chavez sold 3,635 shares of the business's stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $182.51, for a total transaction of $663,423.85. Following the completion of the sale, the insider directly owned 14,035 shares of the company's stock, valued at approximately $2,561,527.85. The trade was a 20.57% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 0.19% of the company's stock.

Analysts Set New Price Targets

A number of equities analysts have commented on the company. UBS Group boosted their price objective on 3M from $190.00 to $218.00 and gave the stock a "buy" rating in a research note on Wednesday, July 22nd. Wells Fargo & Company started coverage on 3M in a research report on Thursday, September 24th. They issued an "equal weight" rating and a $195.00 target price on the stock. Weiss Ratings lowered shares of 3M from a "buy (b)" rating to a "buy (b-)" rating in a research note on Thursday, October 8th. Sanford C. Bernstein upgraded shares of 3M from an "underperform" rating to a "market perform" rating and boosted their target price for the company from $145.00 to $171.00 in a research report on Friday, September 25th. Finally, Mizuho lifted their target price on shares of 3M from $160.00 to $180.00 and gave the stock a "neutral" rating in a research report on Thursday, July 23rd. Seven research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $181.71.

About 3M

3M is a diversified technology and manufacturing company headquartered in St. Paul, Minnesota. Founded in 1902 as Minnesota Mining and Manufacturing Company, it developed from a mining venture into a global enterprise known for applying materials science and engineering to a broad range of industrial, commercial and consumer applications.

The company develops and manufactures products including adhesives, abrasives, filtration systems, personal protective equipment, medical and dental supplies, electrical and electronic materials, automotive components, reflective materials and workplace safety solutions.

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