3M Company (MMM) is scheduled to release its first-quarter earnings report on Tuesday morning. Investors are hoping for solid results and more clarity regarding the rising trade war risks under President Donald Trump.
Q1 2025 Performance Estimates:
- EPS (Earnings Per Share): Projected at $1.77 (down from $2.39 a year ago).
- Revenue: Estimated at $5.8 billion (down from $7.7 billion last year).
Note: This decline is partly due to the spinoff of its healthcare unit, Solventum, on April 1, 2024.
Investor Sentiment and Expectations:
- Investors are looking for a strong earnings beat (results exceeding estimates).
- Forward guidance is also critical:
- In January, 3M projected 2025 sales growth of 2.5%.
- Organic sales grew by 1% in Q1 2024—marking the first positive growth in four quarters.
2025 Earnings Outlook:
- EPS guidance is projected between $7.60 and $7.90, with consensus at $7.78.
External Risk Factors:
- Roughly 45% of 3M’s revenue comes from outside the U.S., with 30% from the Asia-Pacific region.
- While retaliatory tariffs amid trade war tensions remain a low-probability risk, investors are staying cautious.
- Morgan Stanley maintains a Sell rating on 3M stock with a $130 price target.
Market Reaction & Volatility Expectations:
- 3M stock has traded relatively flat since the November 5 presidential election, whereas the S&P 500 and Dow Jones have fallen 11% and 10%, respectively.
- The options market suggests a potential 6% price swing for 3M following its earnings release.
Earning Projection Prediction
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