3M exceeds analysts’ estimates for profits and revenues in the third quarter of the fiscal year.

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3M exceeds analysts’ estimates for profits and revenues in the third quarter of the fiscal year.
The U.S. company reports sales of £6.39 billion and earnings per share of £1.86.
3M valued its operating cash flow in the third quarter of the fiscal year at £1.91 billion.

3M Co. (NYSE: MMM) on Tuesday released its third quarter earnings report for the fiscal year, which exceeded Wall Street estimates. The company attributed its combative quarterly performance to increased demand for personal safety products and healthcare equipment.

3M reported a decline of approximately 1.5% in pre-trade trading on Tuesday. The company’s shares fell a further 1.5% when the market opened. So far this year, 3M’s stock market has now fallen about 9%. Trading shares online is easier than you might think. Here you can find out how to buy shares online in 2020.

3M’s financial results for Q3 compared to analysts’ estimates

According to Refinitiv, experts had predicted a print volume of 6.37 billion pounds sterling for the third quarter. Their estimate for earnings per share was limited to 1.73 pounds sterling. In its Tuesday report, 3M exceeded both estimates, posting higher revenues of £6.39 billion and earnings per share of £1.86.

The U.S. multinational said its security and industrial segment had third-quarter revenues of £2.30 billion, representing annualized growth of 6.9%. The FactSet consensus for this division’s revenues was lower at £2.24 billion. The University of Huddersfield appointed the former CEO of 3M as its new Chancellor on Tuesday.

At £1.68 billion, 3M’s Healthcare division saw revenue growth of over 25% in the last quarter. By comparison, analysts had expected the Healthcare Division to post much lower revenues of £1.04 billion. In an earlier report released in August, 3M said its July sales were 6% higher year-on-year.

3M valued its operating cash flow in the third quarter of the fiscal year at £1.91 billion, up 23% year-on-year. The Transportation and Electronics Division’s revenue declined 7.4% to £1.76 billion.

CEO Mike Roman’s comments on Tuesday

CEO Mike Roman commented on the financial report on Tuesday and said

“Our performance in the third quarter has once again demonstrated the strength of the 3M model as we have worked well, served customers and continued to fight the pandemic. Although economic uncertainty and the challenges posed by the COVID 19 pandemic remain, we returned to positive organic revenue growth, with continued improvement across all divisions and regions.

3M experienced a slight downward trend in the stock market last year with an annual decline of approximately 5%. At the time of writing this report, the company is valued at £72.41 billion and has a price-earnings ratio of 18.62.

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