3M tops Q3 adjusted EPS estimates, raises guidance

3M

Yesterday 11:42

Overview
US diversified industrials firm's Q3 adjusted sales up 4.2% yr/yr, slightly missing analysts' expectations
Adjusted EPS for Q3 rose 12% yr/yr, beating analyst expectations
Company raised 2026 adjusted EPS guidance, citing productivity gains and technology pipeline

Outlook
3M raises 2026 adjusted EPS guidance to $9.10-$9.15
Company expects 2026 adjusted total sales growth of over 4.5%
3M forecasts 2026 adjusted operating cash flow of about $5.9 bln and free cash flow of $4.8 bln

Result Drivers
PRODUCTIVITY IMPROVEMENTS - Co said margin expansion and earnings growth were driven by improved productivity through structural transformation
TECHNOLOGY PIPELINE - Co cited a stronger pipeline of differentiated technologies as supporting performance and outlook
GOVERNMENT CONTRACTS - Co said it expanded work with US and international government customers in Q3, including defense, health care, and emergency response awards

Company press release: ID:nPnd8hmra

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
 
$6.60 bln
 
Q3 Adjusted Sales
Slight Miss*
$6.60 bln
$6.61 bln (12 Analysts)
Q3 Adjusted EPS
Beat
$2.50
$2.38 (14 Analysts)
Q3 EPS
 
$2.63
 
Q3 Adjusted Organic Sales Growth
 
3.30%
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 10 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the consumer goods conglomerates peer group is "buy"
Wall Street's median 12-month price target for 3M Company is $187.00, about 15.4% above its October 19 closing price of $162.01
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 18 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)