NEW YORK (TheStreet) -- Shares of 3M Company (MMM) are up 1.04% to $158.48 in pre-market trade after the diversified technology company said its per-share earnings could grow by as much as 12% next year as the company's appetite for acquisitions helps drive growth, the Wall Street Journal reports.
3M also increased its dividend for its next quarter by 20%. The company promised last December to adopt a somewhat less conservative financial strategy and consider larger acquisitions in an effort to improve shareholder returns, the Journal said.
Ahead of an investor meeting, 3M said it expects to report $8 to $8.30 in per-share earnings next year, compared with the $7.40 to $7.50 a share in earnings the company is expecting to post this year.
Analysts polled by Thomson Reuters are expecting 3M to post $8.20 in per-share earnings next year.
3M also said it expects its organic local-currency sales to grow 3% to 6% next year. For the current year, 3M has forecast 4% to 5% organic sales growth.
The outlook came a day after 3M agreed to sell its static control business to electronics-production company Desco Industries, the Journal noted.
3M also reaffirmed its long term-growth targets Tuesday, looking to grow its earnings 9% to 11% a year and its organic sales 4% to 6% a year.
Separately, TheStreet Ratings team rates 3M CO as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate 3M CO (MMM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and notable return on equity. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- You can view the full analysis from the report here: MMM Ratings Report
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