3M Co (MMM) Reports Q1 Results Above Expectations

3M Co (NYSE:MMM) humble beginnings can be traced back to 1902 when it commenced operations as a small mining venture in Northern Minnesota. Back then, it was engaged in mining mineral deposits for grinding wheel abrasives. In 1905, the company relocated to Duluth to manufacture sandpaper products. 3M diversified over the years, adding several new products to its portfolio. Today, the company’s thousands of products are used in households, educational institutes, healthcare facilities, among other industries.

The Minnesota-based company on Tuesday announced better-than-expected financial results for the first quarter. 3M reported earnings of $2.77 per share for the three months ended March 31, up from $2.27 per share in the comparable period of 2020. Excluding items, the adjusted earnings of $2.77 per share easily surpassed the consensus estimate of $2.29 per share.

Revenue rose 9.6 percent to $8.85 billion in the quarter, beating analysts’ average forecast of $8.44 billion. If we look at the performance of different units, revenue from the safety and industrial segment jumped 13.7 percent to $3.3 billion, while revenue from the transportation and electronics segment increased 13.1 percent to $2.5 billion. Combatively, health care revenue surged 6.8 percent to $2.2 billion, and consumer revenue rose 9.8 percent to $1.4 billion.

Speaking on the results, CEO Mike Roman said, “Our four industry-leading businesses are delivering strong results, while we accelerate 3M’s digital transformation and sustainability efforts with significant new goals to improve air and water quality. While uncertainty related to COVID-19 remains, we will stay focused on driving growth, building on favorable market trends, improving operational performance and delivering for customers and shareholders.”

3M reaffirmed its financial outlook for fiscal 2021. The company is anticipating earnings in the range of $9.20 per share to $9.70 per share and revenue growth of 5-8 percent for the full year.

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