Falling revenue did not prevent S&P 500 (NYSE:SPY) component 3M Company (NYSE:MMM) from reporting a profit boost in the third quarter. 3M is a global manufacturer, technology innovator, and marketer of a variety of products.
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3M Company Earnings Cheat Sheet
Results: Net income for 3M Company rose to $1.16 billion ($1.65 per share) vs. $1.09 billion ($1.52 per share) in the same quarter a year earlier. This marks a rise of 6.6% from the year-earlier quarter.
Revenue: Fell 0.4% to $7.5 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: 3M Company fell in line with the mean analyst estimate of $1.65 per share. It fell short of the average revenue estimate of $7.79 billion.
Quoting Management: “The 3M team delivered another strong operating performance in the third quarter,” said Inge G. Thulin, 3M chairman, president and chief executive officer. “In the face of the current slow-growth economy, our businesses continued to grow organically and generated record profitability. All six of our businesses posted 21 percent-plus operating margins in the quarter, so we continue to execute well in 2012.”
The company’s net income has now been increasing for four consecutive quarters. In the second quarter, net income rose 0.6% while the figure climbed 4.1% in the first quarter and 2.8% in the fourth quarter of the last fiscal year from the year earlier.
The company fell in line with estimates last quarter after beating expectations in the previous two quarters. In the second quarter, it topped the mark by 11 cents, and in the first quarter, it was ahead by 4 cents.
Revenue has fallen in the past two quarters. In the second quarter, revenue declined 1.9% to $7.53 billion from the year-earlier quarter.
Looking Forward: Expectations for the company’s next-quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the fourth quarter has risen to $1.67 per share from $1.65. For the fiscal year, the average estimate has moved up from $6.30 a share to $6.41 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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