3M Co (NYSE:MMM) is set to report its first-quarter results before the market opens on Tuesday, April 25, and after a tough end to 2022, expectations are for a muted start to 2023 due to reduced consumer spending.
The manufacturing giant, which makes Post-it notes, industrial coatings and ceramics, is expected to report earnings of $1.59 per share, a 40% decline from 1Q 2022. According to the Zacks Consensus Estimate for revenue, net sales are likely to decline about 15% to $7.47 billion.
The company’s 4Q 2022 results missed Wall Street estimates, while its 2023 guidance also fell short, sending its shares lower. Adjusted earnings per share fell 7% to $2.28, missing consensus estimates of $2.36 per share.
It also announced it would cut about 2,500 jobs to align with adjusted production volumes.
According to Bloomberg data, 3M’s 14% slide in the first quarter of 2023 made it the Dow Jones Industrial Average’s worst-performing stock.
Neil Wilson, chief markets analyst at Markets.com, noted that the company expects challenges to continue in the year ahead, with flat organic growth at best, and a 3% decline at worst. Total sales for the year are seen declining by 2% to 6%, he said.
“The company saw rapid declines in consumer-facing markets in the fourth quarter. Bellwether stock – one to watch,” Wilson added.
Ahead of its results, 3M’s shares were 0.3% up at $104.73 in early afternoon trading on Monday.
Contact the author at stephen.gunnion@proactiveinvestors.com