3M Q3 earnings on deck: Will the company post another solid quarter

3M (NYSE:MMM) is expected to report its third quarter results on October 22, Tuesday, before the opening bell.

The consensus EPS Estimate is $1.90 (-29.1% Y/Y) and the consensus Revenue Estimate is $6.06B (-27.1% Y/Y).

“Addressing PFAS litigation and restructuring operations are crucial for 3M’s long-term success and ability to sustain shareholder value through dividends and stock buybacks,” said SA analyst Shariq Khan.

“The recent appointment of William Brown as CEO brings hope, especially with his focus on R&D and operational efficiency,” Khan added.

In July, the firm received a few upgrades, one from Deutsche Bank on the CEO’s growth strategy, and from Argus Research on an improved outlook

Deutsche Bank said the industrial conglomerate is poised for growth under the leadership of Bill Brown, who became chief executive officer in March.

The analysts at Argus Research said the firm is improving its profit margin and cash flow.

Last quarter, 3M easily beat its Q2 adjusted earnings estimates and raised the lower end of its full-year earnings guidance.

“Despite a strong global product portfolio and solid cash flow, current free cash flow is insufficient to cover dividends and share buybacks, raising concerns,” another SA analyst Rafa Oliver said.

Over the last 2 years, MMM has beaten EPS estimates 88% of the time and has beaten revenue estimates 75% of the time.

Over the last 3 months, EPS estimates have seen 2 upward revisions and 11 downward. Revenue estimates have seen 4 upward revisions and 6 downward.

Shares in the company were up 25.3% since the start of the year.