Active Stocks Short-Term Price Target Update: 3M Co (NYSE:MMM)

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On Tuesday Shares of 3M Co (NYSE:MMM), dropped -0.15% to $159.68. The firm opened its current trade at $159.48. The total volume traded for the day is 573,449.00 shares, as compared to its average daily volume of 2.70M shares. The stock is floating in a range of $159.00 $159.80. The stocks hold the market capitalization of $98.31B.

According to news report, 3M (MMM) stated third-quarter earnings of $2.05 per share, an improvement of 3.5 percent as compared to the third quarter of 2014. Sales declined 5.2 percent year-on-year to $7.7 billion. Organic local-currency sales grew 1.2 percent and acquisitions, net of divestitures, added another 1.0 percent. Foreign currency translation reduced sales by 7.4 percent year-on-year.

Third-Quarter Highlights:

  • Operating income margins of 24.3 percent, up 0.9 percentage points year-on-year
  • Organic local-currency sales growth of 1.2 percent, positive across all geographic areas
  • Returned $2.2 billion to shareholders via dividends and gross share repurchases
  • Closed acquisitions of Capital Safety and Polypore’s Separations Media business

Operating income was $1.9 billion and operating income margins for the quarter were 24.3 percent, up 0.9 percentage points year-on-year. Third-quarter net income was $1.3 billion and the company converted 101 percent of net income to free cash flow.

3M paid $635 million in cash dividends to shareholders and repurchased $1.5 billion of its own shares during the quarter.

Organic local-currency sales growth was 5.0 percent in Consumer, 3.7 percent in Health Care, 2.9 percent in Safety and Graphics and 0.2 percent in Industrial; Electronics and Energy declined 2.8 percent. On a geographic basis, organic local-currency sales grew 2.3 percent in Latin America/Canada, 1.5 percent in the U.S., 1.5 percent in EMEA (Europe, Middle East and Africa) and 0.4 percent in Asia Pacific.

“3M delivered a solid operational performance in a continued slow-growth environment, marked by strong earnings, organic growth in all geographic areas and expanded margins,” said Inge G. Thulin, 3M’s chairman, president and chief executive officer. “We continue to take actions to strengthen our portfolio, improvement our scientific edge through research and development, and transform our business processes through a new global ERP system. We are building a stronger, more streamlined and more focused company that can compete and win for years to come.”

MMM stock is now trading at $159.43, having a volume of 720,970.00 shares. The year-to-date (YTD) performance of MMM stock reflects that it is -2.98% below last year. During the past month, the stock gain 11.33%, bringing three-month performance to 6.2% and six-month performance to 1.1%. For this stock, beta value at 1.12 represents it is too much volatile.

Short-Term Price Target Update: The mean estimate for the short-term price target for the firm stands at $160.08, according to 13 brokers. The higher price target for MMM is $185.00, while the lower price target is $138.00.

Third-Quarter Business Group Negotiation

Industrial

  • Sales of $2.6 billion, down 7.1 percent in U.S. dollars. Organic local-currency sales raised 0.2 percent, acquisitions raised sales 0.7 percent and foreign currency translation reduced sales by 8.0 percent.
  • On an organic local-currency basis:
  • Sales growth was led by automotive OEM, 3M purification, abrasives, and industrial adhesives and tapes; advanced materials declined.
  • Sales grew in Latin America/Canada, Asia Pacific and EMEA; sales declined in the U.S.
  • Operating income was $580 million, a decrease of 5.8 percent year-on-year; operating margin of 22.5 percent.

Safety and Graphics

  • Sales of $1.4 billion, down 2.2 percent in U.S. dollars. Organic local-currency sales raised 2.9 percent, acquisitions raised sales 4.2 percent and foreign currency translation reduced sales by 9.3 percent.
  • On an organic local-currency basis:
  • Sales grew in roofing granules, commercial solutions and personal safety; traffic safety and security declined.
  • Sales raised in Asia Pacific, EMEA and the U.S.; sales declined in Latin America/Canada.
  • Operating income was $324 million, a decrease of 4.8 percent year-on-year; operating margin of 22.9 percent.

Health Care

  • Sales of $1.3 billion, down 3.2 percent in U.S. dollars. Organic local-currency sales raised 3.7 percent, acquisitions raised sales by 0.9 percent and foreign currency translation reduced sales by 7.8 percent.
  • On an organic local-currency basis:
  • Sales grew in health information systems, food safety, critical and chronic care, oral care and infection prevention; drug delivery systems declined year-on-year.
  • Sales grew in all areas led by Latin America/Canada, Asia Pacific and the U.S.
  • Operating income was $432 million, an improvement of 0.1 percent year-on-year; operating margin of 32.1 percent.

Electronics and Energy

  • Sales of $1.4 billion, down 8.1 percent in U.S. dollars. Organic local-currency sales declined 2.8 percent, divestitures reduced sales by 0.7 percent and foreign currency translation reduced sales by 4.6 percent.
  • On an organic local-currency basis:
  • Electronics-related sales declined 3 percent, as sales grew in electronics materials solutions and declined in display materials and systems; energy-related sales declined 2 percent, as growth in telecom was offset by declines in electrical markets and renewable energy.
  • Sales grew in EMEA; sales declined in the U.S., Latin America/Canada and Asia Pacific.
  • Operating income was $342 million, an improvement of 1.4 percent year-on-year; operating margin of 24.9 percent.

Consumer

  • Sales of $1.2 billion, down 1.2 percent in U.S. dollars. Organic local-currency sales raised 5.0 percent and foreign currency translation reduced sales by 6.2 percent.
  • On an organic local-currency basis:
  • Sales growth was led by stationery and office supplies, home improvement and home care.
  • Sales rose in the U.S., Asia Pacific and EMEA; Latin America/Canada sales declined year-on-year.
  • Operating income was $293 million, up 7.5 percent year-on-year; operating margin of 25.2 percent.

3M Company operates as a diversified technology company worldwide. Its Industrial segment offers tapes; coated, non-woven, and bonded abrasives; adhesives; ceramics; sealants; specialty materials; filtration products; closure systems for personal hygiene products; acoustic systems products; automotive components; abrasion-resistant films; structural adhesives; and paint finishing and detailing products.

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Been writing about and trading stocks since 2013. Manage a group of micro-cap investors on Facebook with over 15,000 members. Turned $8,500 into 185k the first year I started trading stocks and haven't looked back.