Jim Cramer Says Buy 3M Stock
3M reported July sales that were notably higher when compared to last year, suggesting a solid start to the third quarter for the Dow component.
3M said July sales rose 6% from the same period in 2019, coming in at a stronger-than-expected $2.8 billion. North American sales, 3M said, rose 10%, while European sales were up 3%. Health Care revenues lead the gains, 3M said, rising 29%, while consumer and safety and industrial sales rose 9% and 6% respectively.
Late last month, 3M reported a 19% slump in second-quarter profits as industrial sales slumped amid the peak of the coronavirus pandemic, trimming overall revenues to $7.2 billion, a 12% decline from the same period last year.
3M has previously pulled its full-year profit guidance and cut its capital expenditure plans amid the peak of the coronavirus pandemic, even as it posted stronger-than-expected first-quarter earnings of $2.16 per share and revenues of $8.1 billion.
“While our results were significantly impacted by the global economic slowdown, we executed well, managed our costs and delivered another quarter of robust cash flow,” said CEO Mike Roman on July 28. “We are taking actions to navigate near-term challenges, while relentlessly innovating for our customers and investing for the future to lead out of the slowdown and continue to deliver long-term value for our shareholders.
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