3M Earnings: Here’s Why the Stock is Falling Now

3M Co. (NYSE:MMM) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 3.24%.

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3M Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 1.26% to $1.61 in the quarter versus EPS of $1.59 in the year-earlier quarter.

Revenue: Rose 1.98% to $7.63 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: 3M Co. reported adjusted EPS income of $1.61 per share. By that measure, the company missed the mean analyst estimate of $1.65. It missed the average revenue estimate of $7.81 billion.

Quoting Management: “We achieved record first-quarter sales and solid operating margins in the face of a low-growth economic environment and the strong U.S. dollar,” said Inge G. Thulin, 3M chairman, president and chief executive officer. “At the same time, we further strengthened the company through increased investments in innovation, commercialization and manufacturing.”

Key Stats (on next page)…

Revenue increased 3.34% from $7.39 billion in the previous quarter. EPS increased 14.18% from $1.41 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $1.78 and has not changed. For the current year, the average estimate is a profit of $6.83, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)