3M Reports Better-Than-Expected Q4 Results

3M (MMM) delivered better-than-expected fourth-quarter and full-year results and successfully shrugged off supply-chain disruptions. Revenue and earnings topped consensus estimates as the company focused on serving customers in a challenging environment. MMM shares rose 0.55 % to close at $173.75 on January 25.

3M is a Minnesota-based company that manufactures and sells industrial, safety, and consumer products worldwide. It operates through the Safety and Industrial, Transportation and Electronics, Health Care, and Consumer segments.

Financial Results

Revenue in the fourth quarter rose 0.3% year-over-year to $8.6 billion, beating consensus estimates of $8.58 billion, helped by an increase in sales in closure and masking systems, tapes, electrical markets, and automotive aftermarket. For the full year, sales were up 9.9% year-over-year to $35.4 billion.

Fourth-quarter earnings per share were down 4% year-over-year to $2.31, easily beating consensus estimates of $2.02 a share. Full-year adjusted earnings were up 14% to $10.12 a share.

3M returned significant cash to shareholders during the year by paying $3.4 billion in cash dividends. 3M has increased its payouts steadily over the past 13 years, leading to a solid dividend yield of 3.43%. The company also repurchased $2.2 billion worth of shares.

Stock Rating

Last week Mizuho Securities analyst Brett Linzey reiterated a Hold rating on the stock with a $180 price target, implying 3.60% upside potential to current levels.

Consensus among analysts is a Moderate Sell based on 8 Holds and 4 Sells. The average 3M price target of $179.92 implies 3.55% upside potential to current levels.

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