3M Co. (MMM) reported second-quarter financial results that both improved from a year ago and exceeded consensus expectations. Citing strong first-half results, the company went on to raise its full-year 2021 guidance.
Revenue of $8.9 billion rose 24.7% year-over-year and beat consensus estimates of $8.5 billion. Adjusted EPS of $2.59 improved 44% year-over-year and surpassed consensus estimates of $2.29.
The company runs a diversified business and operates in many countries. The Transportation and Electronics segment grew the most at 28.1% year-over-year. Sales in the Health Care segment increased 24.9% year-over-year.
The company raised its full-year 2021 revenue and earnings outlook. It now expects revenue to grow in the range of 7% – 10%, compared to the 5% – 8% range previously forecast. It sees EPS of between $9.70 – $10.10, up from previous expectations of $9.20 – $9.70.
“We remain focused on investing in growth opportunities coming out of the pandemic, improving productivity, advancing sustainability and delivering differentiated value for our customers and shareholders,” commented 3M CEO Mike Roman.
3M returned $1.4 billion to its shareholders in Q2. The amount consisted of $858 million in cash dividend distributions and $503 million in share repurchases. (See 3M stock charts on TipRanks).
Morgan Stanley analyst Joshua Pokrzywinski reiterated a Hold rating on MMM. Pokrzywinski raised the price target to $213 from $200, implying upside potential of 6.25%.
Consensus among analysts is a Moderate Sell based on 3 Holds and 3 Sells. The average 3M price target of $198.71 implies that shares are fully-priced at current levels.
MMM scores a 5 out of 10 on TipRanks’ Smart Score rating system, suggesting that the stock is likely to perform in line with market averages.
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