3M Company (MMM) is scheduled to report second-quarter 2014 results before the opening bell on Jul 24. In the last reported quarter, 3M earnings were in line with the Zacks Consensus Estimate. Let’s see how things are shaping up for this announcement.
Factors to Consider
Portfolio management, investment in innovation, and business transformation are the three key levers on which 3M intends to focus on moving forward. Furthermore, the company’s continued investment in research and development enables it to generate organic growth by innovating products and applications that capture premium pricing in the early stages of their life cycle. This enables 3M to improve margins consistently and capitalize on its brand value.
Recently, a credit rating firm Moody's Corp. (MCO) assigned an investment grade Aa2 rating and a stable outlook for $1.1 billion of unsecured debt issue by 3M. The debt rating reflects 3M's strong competitive position across an extensive range of markets, robust operating profitability and stability in free cash flow.
3M continues to deliver sustainable increases in sales, earnings and free cash flow, benefiting from its long-term strategy of accelerating investment in high-growth programs.
Earnings Whispers
Our proven model shows that 3M is likely to beat earnings since it has the appropriate combination of two key ingredients:
Positive Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +0.52%.
Zacks Rank #3 (Hold): Stocks with a Zacks Ranks of #1, #2 and #3 have a significantly higher chance of beating earnings. The Sell-rated stocks (#4 and #5) should never be considered while going into an earnings announcement.
3M’s Zacks Rank #3 increases the predictive power of ESP. The combination of its Zacks Rank and positive Earnings ESP make us confident of a positive earnings surprise in the soon-to-be reported quarter
Other Stocks to Consider
Here are some companies you may want to consider as our model shows that they have the right combination of elements to post an earnings beat in the future:
- Arch Capital Group Ltd. (ACGL) earnings ESP of +5.10% and Zacks Rank #2 (Buy)
- ConocoPhillips (COP) earnings ESP of +3.11% and Zacks Rank #2 (Buy)
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