Earnings Preview: 3M Company

3M Company (MMM) is expected to report Q2 earnings before market open Thursday, July 24, with a conference call scheduled for 9:00 a.m. ET.

Guidance

Analysts are looking for EPS of $1.35 on revenue of $6.69B. The consensus range is $1.32 to $1.40 for EPS, and $6.53B to $6.83B for revenue, according to First Call. When 3M reported its Q1 earnings, it reiterated its FY08 guidance. The company expects FY08 earnings to increase a minimum of 10% over 2007 earnings-per-share of $4.98, which excludes special items. The consensus for FY08 EPS is $5.46.

3M announced in early May its acquisition of Quest Technologies, which broadened the company's presence in the industrial hygiene and safety equipment markets. The company announced in June that it ended its collaboration with Gen-Probe (GPRO) to develop rapid tests for infections developed in hospitals, after the companies discovered their respective technologies were incompatible.

Analyst Views

On June 17, William Blair stated that it views the announcement that 3M discontinued its collaboration with Gen-Probe as a modest negative. However, the firm points out that of all Gen-Probe's pipeline projects, it had the least amount of confidence in this project. The firm maintained its Outperform rating on the company.

Comments

[jsmith4367:]

this company is a disaster - their lcd business is in free fall

2008 Jul 23 09:45 PM

[BEN52184:]

JS has no clue. this is one of the most diversified companys out there and in one year their stock will be at $100 or more.

2008 Jul 24 12:18 AM