3M beats by $0.10, beats on revs; guides FY17 above consensus (194.23)
- Reports Q1 (Mar) earnings of $2.16 per share, $0.10 better than the Capital IQ Consensus of $2.06; revenues rose 3.7% year/year to $7.68 bln vs the $7.48 bln Capital IQ Consensus.
- Co issues upside guidance for FY17, sees EPS of $8.70-9.05 vs. $8.63 Capital IQ Consensus Estimate, up from prior expectation of $8.45 to $8.80. The company now forecasts organic local-currency sales growth to be 2-5%, up from previous guidance of 1-3%.
- 3M updated its guidance for 2017 due to a strong first-quarter performance and improved outlook.
- This includes a $0.05 to $0.10 benefit from the gain on sale of the pending Identity Management divestiture, net of various investments to drive growth and improve productivity.
- The company also anticipates its full-year tax rate will be 26.0 to 27.5 percent, versus a prior range of 28.0 to 29.0 percent.
- Finally, 3M affirmed its free cash flow expectation of 95 to 105 percent.
- 3M updated its guidance for 2017 due to a strong first-quarter performance and improved outlook.