📊 3M Quarterly Results!
3M $MMM, the global industrial conglomerate known for its innovations in healthcare, electronics, security and consumer goods, has reported mixed results for Q3 2024.

Although revenue declined year-over-year by a significant 21,5 % to $6.29 billion, the company managed to beat Wall Street' s expectations of 3,9 %. This suggests that the company still has the capacity to surprise despite ongoing market challenges 💼🔍.

Key numbers:
Revenue: $6.29 billion ($6.06 billion estimate) 📊

Adjusted earnings per share (EPS): $1.98 (est. $1.90) 💰

Operating EBITDA: Missed expectations and came in at $1.73 billion (-2.5%)

Gross Margin: 42.1% (same as last year)

At first glance, 3M'sresults look relatively positive, mainly due to better-than-expected sales and earnings per share. Management even raised its full-year guidance for adjusted earnings per share to $7.25, an increase of 1,4 %. However, the company faces long-term challenges. Revenues have declined over the past five years by 4,2 % annually, meaning demand for 3M' s products remains weak.

Over the past two years, sales have declined by 12,3 % per year and analysts expect this negative trend to continue, albeit at a slightly slower pace. The outlook for the next 12 months shows sales falling by another 6 %, a more modest decline, but still a signal that the company is unable to resolve its structural problems. 🔄💸

Operational efficiency remains stable:
Despite the revenue decline, 3M maintains a decent operating profit margin, which reached a 20,9 %, an increase of 54 points compared to last year. It's a sign that the company is effectively managing its costs, particularly in marketing, research and development, and administrative expenses. This margin growth indicates that the company is trying to counter the decline in sales by optimizing its internal processes.

A look at long-term earnings per share (EPS) growth:
Over the past five years, earnings per share have declined by 2,8 % per year, a similar trend to sales. It is important to note that some of this EPS growth has been driven by share buybacks - the number of shares has fallen by 5,2 %.

Analysts forecast that 3M 's EPS will decline by 4,6 % to $8.03. This decline reflects ongoing demand issues that the company has not yet been able to resolve. The outlook for the upcoming period therefore remains cautious. 🔮

The company managed to surprise with better sales and earnings per share, but the long-term trends are not favorable for investors. Although operating margins remain stable, this is not growth driven by innovation, but rather by cost optimization.

The share price has fallen by more than 5 %. Since the beginning of the year, however, the shares have gained more than 37 %!

What do you think of 3M?