3M Cos. (NYSE:MMM) shares took a hit today after the industrial conglomerate posted third-quarter results that missed the consensus forecast by wide margin and slashed its outlook for the rest of the year.
The Twin Cities titan reported profits of $1.54 billion, or $2.58 per share, on sales of $8.15 billion for the three months ended Sept. 30, for an 8.0% bottom-line gain on flat sales compared with Q3 2017. Analysts on Wall Street were looking for EPS of $2.70 on sales of $8.39 billion.
“In the third quarter, 3M delivered a double-digit increase in cash flow and earnings-per-share, along with strong margins despite slower growth,” CEO Mike Roman said in prepared remarks. “We also continued to deploy capital to invest in our future and return cash to our shareholders.”
3M cut its outlook for its full-year results, saying it now expects to report adjusted EPS of $9.90 to $10.00, down from $10.20 to $10.45 previously. Organic constant-currency sales growth for 2018 is now pegged at 3%, compared with 3% to 4% previously.
The news sent MMM shares down -7.3% to $186.59 apiece today in late-morning trading.
Operating income for 3M’s healthcare business were off by 4.5% to $446 million during the quarter, on a -2.7% sales slide to $1.45 billion. Top-line gains for its food safety, health information and oral care segments were offset by a decline in drug delivery. Sales grew in the Asia-Pacific, Latin American and Canadian markets but were off in the U.S. and Europe, the Middle East and Africa, 3M said.
