There’s been a slew of earnings reports come in over the past 24 hours, with Procter & Gamble Co (NYSE:PG), 3M Co (NYSE:MMM), E I Du Pont De Nemours And Co (NYSE:DD), Coach Inc (NYSE:COH), and Eli Lilly and Co (NYSE:LLY) being five of the most prominent companies that have reported their financial results for their latest fiscal quarters. Given that earnings are one of the key indicators of future performance, let’s take a closer look at each report. Let’s also examine what the smart money thinks of each stock based on the latest 13F filings with the SEC.
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P&G Turns in Mixed Quarter
Procter & Gamble Co (NYSE:PG) is trending after turning in a mixed third quarter of fiscal year 2016. For the January 1 to March 31 period, the consumer staples giant earned $0.86 per share on sales of $15.76 billion, beating earnings estimates by $0.04 per share but missing sales expectations by $50 million. Organic sales inched up by 1% while total sales dropped by 6.9% year-over-year due to the strong dollar. Full 2016 fiscal year guidance anticipates core EPS declining by 3%-to-6% from the company’s 2015 fiscal year earnings of $3.76 per share. Warren Buffett‘s Berkshire Hathaway owned 52.79 million shares of Procter & Gamble Co (NYSE:PG) at the end of December.
3M Beats Expectations
3M Co (NYSE:MMM) reported an excellent first quarter this morning, which beat both top and bottom-line estimates. For the first three months of the year, the diversified industrial conglomerate earned $2.05 per share on revenue of $7.41 billion, above the estimates of $1.92 per share and $7.33 billion respectively. While some of the earnings beat was due to 3M adopting a new FASB accounting standard, which added a net $0.10 to EPS, the company’s fundamentals still improved. Operating margin rose by 1.3% while free cash flow jumped by 20% year-over-year to $946 million. The company also increased its first quarter dividend payment by 8%, marking the 58th consecutive year of dividend increases. For full year 2016, management maintained its EPS estimate of $8.10-to-$8.45 and organic local currency sales growth of 1%-to-3%. Cliff Asness‘ AQR Capital Management was one of the top shareholders of 3M Co (NYSE:MMM) at the end of 2015.
On the next page we examine the first quarter performance of E I Du Pont De Nemours And Co, Coach Inc, and Eli Lilly and Co.