3M tops Q3 adjusted EPS estimates, raises guidance
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:
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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(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.)