NYSE$MMM

3M · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

3M reported mixed Q3 2022 results, with strong GAAP EPS but sales impacted by currency and divestitures.

3M reported Q3 2022 results with GAAP earnings per share of $6.77 and adjusted earnings per share of $2.69. Sales were $8.6 billion, down 4 percent year-on-year, impacted by divestitures and foreign currency translation. Organic sales growth was 2 percent, including a headwind from declining respirator demand. The company updated its full-year sales and earnings expectations to reflect the strengthening U.S. dollar and the uncertain macroeconomic environment.

  • GAAP earnings per share were $6.77, and adjusted earnings per share was $2.69.
  • Sales reached $8.6 billion, a 4% decrease year-over-year due to divestitures and currency translation.
  • Organic sales grew by 2%, but were impacted by a decline in disposable respirator demand.
  • 3M updated its full-year sales and earnings expectations to reflect the strengthening U.S. dollar and uncertain macroeconomic conditions.

Headline financials

Total Revenue

$8.62B

Previous: $8.94B-3.6%
EPS (adj)

$2.69

Previous: $2.45+9.8%
Organic Revenue Growth

2.0%

Previous: 6.3%-68.3%
Capital Expenditures

-$1.24B

Previous: -$1.05B-18.7%
Free Cash Flow

$2.62B

Previous: $387M+576.0%
Net Income

$3.86B

Previous: $1.43B+169.1%
Operating Income

$4.16B

Previous: $1.79B+132.4%
Gross Profit

$3.89B

Previous: $4.09B-4.8%
Cash & Equivalents

$3.4B

Previous: $4.88B-30.2%
Total Assets

$46.2B

Previous: $48.3B-4.4%
Stock-Based Comp

$44M

Previous: $43M+2.3%

Revenue & EPS history

3M · Revenue · Quarterly

$8.62B

Q3 2022-3.6%vs Q3 2021
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

3M · $1.41B total across 1 segment · Q3 2022

  • Consumer
    $1.41B-7.6%

Forward guidance

3M updated its full-year sales and earnings expectations to reflect the continued strengthening of the U.S. dollar and the uncertain macroeconomic environment.

Tailwinds

  • Focus on investments for growth, productivity, and sustainability.
  • Active portfolio management, including the divestiture of the food safety business.
  • Plans to spin off the Health Care business into a separate public company.
  • Expects operating cash flow of $6.8 to $7.4 billion.
  • Anticipates adjusted free cash flow conversion of 85% to 95%.

Headwinds

  • Total sales growth is expected to be -3.5% to -3.0%.
  • Organic sales growth is projected to be 1.5% to 2.0%.
  • Acquisition and divestiture sales growth is estimated at -0.5%.
  • Foreign currency translation impact on sales is expected to be -4.5%.
  • Adjusted earnings per share are forecasted to be $10.10 to $10.35.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

-0.0%

Avg return

Earnings day

-0.4%

Avg return

5 days after

-0.2%

Avg return

30 days after

48%

35 / 73 earnings

Positive

+21.1%

Q2 2024

Best reaction

-13.7%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.9%-3.6%-0.1%
Q4 2025-7.0%-3.1%-1.6%
Q3 2025+7.9%+8.9%+6.4%
Q2 2025-2.2%-3.7%-1.5%
Q1 2025+8.1%+8.9%+18.8%
Q4 2024+5.7%+6.0%+5.7%
Q3 2024-5.1%-7.5%-5.6%
Q2 2024+21.1%+23.4%+26.3%
Q1 2024+6.8%+5.4%+6.6%
Q4 2023-13.7%-11.1%-14.6%
Q3 2023+4.4%+2.2%+11.4%
Q2 2023+8.0%+7.3%-5.5%
Q1 2023-2.0%+1.1%-7.6%
Q4 2022-7.9%-4.6%-10.6%
Q3 2022+3.7%+6.9%+8.1%
Q2 2022+3.5%+6.8%+6.4%
Q1 2022-3.0%-2.9%-1.0%
Q4 2021-2.0%-2.6%-11.8%
Q3 2021-2.3%-2.0%-2.6%
Q2 2021-1.7%-1.8%-3.1%
Q1 2021-1.9%-1.2%+1.8%
Q4 2020+9.5%+3.1%+4.9%
Q3 2020-4.6%-3.7%+6.6%
Q2 2020-4.3%-7.8%+0.5%
Q1 2020+1.7%-3.3%+2.1%
Q4 2019-7.8%-9.7%-14.5%
Q3 2019-1.6%+0.0%-0.7%
Q2 2019-3.0%-1.0%-13.1%
Q1 2019-12.5%-13.5%-24.2%
Q4 2018+3.1%+3.1%+7.3%
Q3 2018-8.4%-8.1%-1.3%
Q2 2018+2.8%+4.3%+2.0%
Q1 2018-7.9%-9.2%-7.6%
Q4 2017+4.4%+1.6%-4.3%
Q3 2017+7.3%+6.0%+4.5%
Q2 2017-5.2%-4.9%-3.8%
Q1 2017+0.4%+0.8%+2.7%
Q4 2016-1.0%-0.6%+4.9%
Q3 2016-2.8%-3.2%+0.6%
Q2 2016-0.8%-0.7%-0.0%
Q1 2016-0.4%
Q4 2015+5.8%
Q3 2015+4.0%
Q2 2015-3.9%
Q1 2015-3.5%
Q4 2014-0.2%
Q3 2014+6.9%
Q2 2014+0.3%
Q1 2014-1.0%
Q4 2013-1.6%
Q3 2013+1.0%
Q2 2013+0.5%
Q1 2013-3.8%
Q4 2012+1.1%
Q3 2012-4.5%
Q2 2012+3.3%
Q1 2012+1.9%
Q4 2011+0.6%
Q3 2011+1.6%
Q2 2011-4.0%
Q1 2011+0.7%
Q4 2010+0.8%
Q3 2010-1.3%
Q2 2010+0.6%
Q1 2009-3.9%
Q1 2010-0.5%
Q4 2009+1.2%
Q4 2007+1.2%
Q3 2009-1.6%
Q3 2008-1.6%
Q4 2008+3.2%
Q2 2009+3.2%
Q2 2008+3.2%

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