Benzinga | Oct 26, 2021 10:36AM EDT

3M Q3 Earnings Top Street View, Trims FY21 EPS Outlook

* 3M Co (NYSE:MMM) reported third-quarter FY21 net sales growth of 7.1% year-over-year to $8.94 billion, +6.3% on an Organic local-currency basis, beating the consensus of $8.67 billion.

* Sales by segments: Safety and Industrial $3.2 billion (+7.2% Y/Y), Transportation and Electronics $2.5 billion (+5.8% Y/Y), Health Care $2.2 billion (+4.1% Y/Y) and Consumer $1.5 billion (+8.1% Y/Y).

* Adjusted EPS was $2.45 same as reported in 3Q20, beating the consensus of $2.20.

* The operating income decreased by 6.3% Y/Y to $1.79 billion, and the margin contracted by 287 bps to 20%.

* 3M generated cash from operating activities year-to-date of $5.45 billion, compared to $5.59 billion a year ago.

* Q3 operating cash flow was $1.9 billion and adjusted free cash flow was $1.5 billion, down 29% Y/Y.

* Adjusted EBITDA declined 5.3% Y/Y to $2.26 billion, and margin contracted by 330 bps to 25.3%.

* FY21 Outlook: 3M expects total sales growth of 9% - 10% (up from prior expectation of 7% - 10%), Organic local-currency sales growth of 8% - 9% (prior 6% - 9%).

* EPS of $9.70 - $9.90 (prior $9.70 - $10.10) vs. consensus of $9.83.

* Price Action: MMM shares are trading higher by 0.48% at $183.27 on the last check Tuesday.