3M Co. (NYSE: MMM) is scheduled to report third quarter FY 2011 financial results ahead of the opening bell October 25, 2011. In the last four quarters, the company's reported EPS exceeded Wall Street's consensus estimates for quarters ended September 2010, December 2010, and March 2011 by margins of 1.30 percent, 0.80 percent, and 3.50 percent, respectively. For the quarter ended June 2011, the reported EPS met Wall Street estimates of $1.60 per share.
In fiscal 2011 Q2 and fiscal 2010 Q3 and Q4, the company's stock price fell on the day it reported its quarterly results. However, in fiscal 2011 Q1, the stock prices gained in value after the company reported better-than-expected results.
During the third quarter, 3M completed the acquisition of Advanced Chemistry & Technology Inc., a manufacturer of quick cure, light-weight polysulfide sealants for aerospace applications. Terms of the transaction were not disclosed. The addition of Advanced Chemistry & Technology expands 3M's product presence in the aerospace market for the manufacture and maintenance of commercial and military aircraft.
On October 3, 2011, the company also announced the completion of the acquisition of the do-it-yourself and professional business of GPI Group, which is headquartered in France. GPI is a manufacturer and marketer of home improvement products such as tapes, hooks, insulation and floor protection products and accessories, headquartered. This acquisition builds on 3M's existing product platforms and accelerates its expansion and participation in home improvement channels globally. The financial terms of the contract were not disclosed by the companies.
For the third quarter, the Wall Street consensus is $1.61 per share, up 5.2 percent from a year ago when 3M reported earnings of $1.53 per share. Over the past three months, the consensus estimate has been decreased from $1.69 per share. Analysts are projecting earnings of $6.16 per share for FY 2011. Revenue for the year is expected to grow 12.80 percent to $30.08 billion, from $26.66 billion a year ago.
In the conglomerate industry, 3M competes with Avery Dennison Corp. (NYSE: AVY), EI DuPont de Nemours & Co. (NYSE: DD), and Johnson & Johnson (NYSE: JNJ). In the trailing 12-months period, 3M reported net income of $4.28 billion, or $5.89 per share, on revenue of $28.57 billion. AVY reported earnings of $296.50 million, or $2.78 per share, on revenue of $6.66 billion; DD reported net income of $3.38 billion, or $3.61 per share, on revenue of $35.40 billion; and JNJ reported earnings of $11.61 billion, or $4.189 per share, on revenue of $63.40 billion.
During the current quarter, analysts at Barclays Capital initiated the stock with an Equal Weight rating. Analysts have set a consensus price estimate of $95.65 per share. Based on the price target, the stock has a potential to increase in value by almost 23 percent.