3M’s Q3 2018 revenues
Today, 3M (MMM) reported third-quarter revenues of $8.15 billion, marking a 0.25% decline over the third quarter of 2017. The company missed analysts’ expectations of $8.39 billion in revenues. The strong dollar was the primary factor in this decline.
Unfavorable foreign currency translations had an adverse impact of 1.7% on 3M’s overall revenues. With the exception of its Safety and Graphics segment, the majority of 3M’s reporting segments posted lower revenues.
3M’s Q3 2018 adjusted EPS
3M (MMM) reported adjusted EPS of $2.58 for the third quarter, up 10.7% year-over-year. However, 3M missed Wall Street’s expectations of adjusted EPS of $2.70.
3M’s adjusted EPS growth was driven by a lower tax rate, improved productivity, acquisitions, and a reduction in the number of outstanding common shares. As with its overall revenues, unfavorable foreign currency translations had an adverse impact on 3M’s adjusted EPS.
Guidance and stock price
3M issued new guidance and lowered its adjusted EPS for fiscal 2018 for the third time this year. The new range is expected to be $9.90–$10.00, down from the previous range of $10.20–$10.45.
The downward revision of 3M’s adjusted EPS guidance pressured the stock, sending it down 4.4% at the time of writing this article. During the same timeframe, General Electric (GE) stock rose 1.7%, Honeywell (HON) stock fell 0.4%, and Deere (DE) stock fell 3.4%. The SPDR S&P 500 ETF Trust (SPY) fell 0.9%.
Watch for our detailed series with more insights into 3M’s earnings.