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3M’s Q4 2018 Earnings Beat Estimates, Stock Trades in the Green

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Jan. 29 2019, Published 2:04 p.m. ET

3M’s Q4 2018 revenues

Today, 3M (MMM) reported fourth-quarter revenues of $7.94 billion, a ~0.6% decline over the fourth quarter of 2017. However, the company beat analysts’ expectations of $7.87 billion in revenues. The strong dollar was the primary factor in this decline.

Unfavorable foreign currency translations had an adverse impact of 2.3% on 3M’s overall revenues. The Industrial segment and the Electronics and Energy segment reported a decline in revenue while the other segments reported revenue growth.

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3M’s Q4 2018 adjusted EPS

3M (MMM) reported adjusted EPS of $2.31 for the fourth quarter, up 10.0% year-over-year. The company managed to beat Wall Street’s expectations for adjusted EPS of $2.28.

3M’s adjusted EPS growth was driven by a lower tax rate, improved productivity, and a reduction in the number of outstanding common shares. At the same time, the unfavorable foreign currency and the divestitures had an adverse impact on 3M’s adjusted EPS.

Guidance and stock price

For full-year 2019, 3M guided for earnings per share in the range of $10.45–$10.90, which includes the contribution from the recently acquired M*Modal technology business. The earlier guidance was in the range of $10.60–$11.05.

3M’s earnings beat pushed the stock price up 1.8% at the time of writing this article. During the same timeframe, General Electric (GE) stock declined 2.2%. Honeywell (HON) and Deere (DE) stocks gained 0.9% and 2.4%, respectively. The S&P 500 (SPY) was trading flat.

Watch for our detailed series with more insights into 3M’s Q4 2018 earnings.

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