3M Updates About PFAS, China, and Future Dividend Growth
It's funny how much attention the market pays to analyst estimates. The bar was already set low for 3M (NYSE: MMM) after the conglomerate's dud first-quarter results three months ago. So, when 3M's second-quarter numbers "beat" Wall Street estimates on July 25, the stock jumped, though only briefly. Perhaps investors realized a beat matters little when the company's sales fell, earnings per share (EPS) slipped by double digits, and management rolled back full-year GAAP EPS guidance for the third time this year.
To be fair, 3M had already warned of a one-time charge of around $160 million through regulatory filings in June related to the suspension of operations at a Venezuelan subsidiary. That 3M didn't slash its adjusted EPS outlook is also a salve to the wound. Also, this guidance doesn't include any potential gain from 3M's pending sale of gas detection business and impact of Acelity, the wound care specialist that 3M is set to acquire for $6.7 billion by the end of this year.
Image source: Getty Images.
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