Strong Earnings Season for Industrial Sector with 19 Companies Beating Estimates
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy MMM?
Source: seekingalpha
- Earnings Beat: Out of the 23 companies in the S&P 500 industrial sector that reported this week, 19 exceeded profit estimates, reflecting resilient demand trends in aerospace, defense, and infrastructure, despite navigating a mixed macro backdrop marked by cost pressures and uneven global industrial activity.
- 3M Performance: 3M Company reported first-quarter adjusted earnings of $2.14 per share, in line with expectations, while revenue of $6.0 billion met forecasts; however, shares slipped as investors weighed a cautious macro outlook, even as the company reiterated its full-year 2026 guidance.
- Boeing Progress: Boeing reported a narrower first-quarter loss of $0.20 per share, with revenue rising 13.8% year-over-year to $22.2 billion, exceeding estimates due to increased commercial aircraft deliveries, and improved cash flow, maintaining its full-year free cash flow outlook of $1 billion to $3 billion.
- RTX Optimism: RTX Corporation reported first-quarter adjusted earnings of $1.78 per share on revenue of $22.1 billion, both surpassing Wall Street estimates, driven by strong defense demand and commercial aftermarket recovery, and raised portions of its full-year 2026 outlook, indicating continued positive momentum across its businesses.
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Analyst Views on MMM
Wall Street analysts forecast MMM stock price to rise
11 Analyst Rating
6 Buy
3 Hold
2 Sell
Moderate Buy
Current: 144.840
Low
100.00
Averages
152.00
High
184.00
Current: 144.840
Low
100.00
Averages
152.00
High
184.00
About MMM
3M Company is a diversified technology company. The Company is a manufacturer and marketer of a variety of products and services. The Company’s segments include Safety and Industrial; Transportation and Electronics, and Consumer. Its Safety and Industrial segment includes industrial abrasives and finishing for metalworking applications; autobody repair solutions; industrial specialty products, such as personal hygiene products, masking, and packaging materials, and others. Its Transportation and Electronics segment includes advanced ceramic solutions; attachment/bonding, films, sound and temperature management for transportation vehicles; premium large format graphic films for advertising and fleet signage. Its Consumer segment includes cleaning products for the home; consumer air quality products, and picture hanging accessories. Its brands include 3M Cubitron II abrasives, Scotch-Brite, Filtrete, Command, Scotchgard, Meguiar’s, Nexcare, Post-it and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Strong Earnings Season for Industrial Sector with 19 Companies Beating Estimates
- Earnings Beat: Out of the 23 companies in the S&P 500 industrial sector that reported this week, 19 exceeded profit estimates, reflecting resilient demand trends in aerospace, defense, and infrastructure, despite navigating a mixed macro backdrop marked by cost pressures and uneven global industrial activity.
- 3M Performance: 3M Company reported first-quarter adjusted earnings of $2.14 per share, in line with expectations, while revenue of $6.0 billion met forecasts; however, shares slipped as investors weighed a cautious macro outlook, even as the company reiterated its full-year 2026 guidance.
- Boeing Progress: Boeing reported a narrower first-quarter loss of $0.20 per share, with revenue rising 13.8% year-over-year to $22.2 billion, exceeding estimates due to increased commercial aircraft deliveries, and improved cash flow, maintaining its full-year free cash flow outlook of $1 billion to $3 billion.
- RTX Optimism: RTX Corporation reported first-quarter adjusted earnings of $1.78 per share on revenue of $22.1 billion, both surpassing Wall Street estimates, driven by strong defense demand and commercial aftermarket recovery, and raised portions of its full-year 2026 outlook, indicating continued positive momentum across its businesses.
See More
Honeywell's Disappointing Q1 Results but Positive Outlook Ahead
- Earnings Highlights: Honeywell's adjusted earnings per share rose 10.1% year-over-year to $2.45, surpassing LSEG's estimate of $2.32, although adjusted revenue grew only 2.4% to $9.1 billion, missing the expected $9.3 billion, indicating resilience in profitability despite challenges.
- Divestiture Plans: The company announced the sale of its Workflow Solutions business in an all-cash transaction, expected to close in the second half of 2026, which is anticipated to enhance shareholder value, as management believes the remaining automation company will be more attractive post-spin-off.
- Market Reaction: Despite an initial drop of over 5% in stock price following the earnings report, the stock rebounded to a 3% decline as management discussed the transformation strategy, leading investors to view the sell-off as a buying opportunity due to future growth potential.
- Future Outlook: Management's outlook for 2026 remains unchanged, with projected sales between $9.4 billion and $9.6 billion, despite facing a $200 million inflation headwind, indicating the company's adaptability in uncertain environments, supported by strong performance in Building and Industrial Automation.
See More
Analysts Adjust Ratings on Tech Stocks Amid Market Volatility
- NVIDIA Upgrade: Hunting Alphas has upgraded NVIDIA (NVDA) to Buy, citing an attractive valuation discount as the AI supercycle begins, with strong GPU pricing power expected to support aggressive investments in new products.
- 3M Upgrade: Bay Area Ideas upgraded 3M (MMM) from Hold to Buy, viewing a forward P/E of 17x as a reasonable entry point, with potential catalysts like the Madison Fire & Rescue acquisition enhancing the long-term outlook despite mixed near-term fundamentals.
- Halliburton Downgrade: Zoltan Ban downgraded Halliburton (HAL) to Hold, noting that while Q1 results were resilient, the stock's valuation limits further upside, requiring an improved external environment for significant price increases.
- Amazon Downgrade: JR Research downgraded Amazon (AMZN) to Hold, arguing that while AWS and AI monetization are strong, the current 32x forward earnings valuation reflects these positives, with free cash flow volatility posing significant risks.
See More
3M CO: JP Morgan Lowers Price Target from $182 to $178
- JPMorgan Cuts Target Price: JPMorgan has reduced its target price for a specific stock from $182 to $178.
- Market Impact: This adjustment reflects changes in market conditions or company performance that may influence investor expectations.
See More
U.S.-Israeli War Disrupts Business Financial Outlooks
- Cost Pressure: AkzoNobel (AKZO.AS) anticipates a nearly 20% increase in raw material costs due to disruptions in the Strait of Hormuz, and although it exceeded market expectations through price hikes and cost savings, it still faces supply chain pressures impacting financial performance over the next two quarters.
- Supply Chain Disruption: Danone (DANO.PA) reported first-quarter sales growth that exceeded expectations but slowed sharply due to war-related supply chain disruptions and a baby formula recall, highlighting the vulnerability of global supply chains.
- Tourism Sector Struggles: German tourism group TUI (TUI1n.DE) cut its full-year operating profit forecast and suspended revenue guidance due to ongoing conflict and uncertainty in the Middle East, reflecting a decline in consumer confidence and overall industry weakness.
- Resource Company Strain: South32 (S32.AX) lowered its full-year forecast for its Australia Manganese unit due to adverse weather and Middle East tensions, indicating rising raw material prices and transportation costs are exerting pressure on its operations.
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3M (MMM) Q1 2026 Earnings Call Transcript
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Strong Earnings Season for Industrial Sector with 19 Companies Beating Estimates
- Earnings Beat: Out of the 23 companies in the S&P 500 industrial sector that reported this week, 19 exceeded profit estimates, reflecting resilient demand trends in aerospace, defense, and infrastructure, despite navigating a mixed macro backdrop marked by cost pressures and uneven global industrial activity.
- 3M Performance: 3M Company reported first-quarter adjusted earnings of $2.14 per share, in line with expectations, while revenue of $6.0 billion met forecasts; however, shares slipped as investors weighed a cautious macro outlook, even as the company reiterated its full-year 2026 guidance.
- Boeing Progress: Boeing reported a narrower first-quarter loss of $0.20 per share, with revenue rising 13.8% year-over-year to $22.2 billion, exceeding estimates due to increased commercial aircraft deliveries, and improved cash flow, maintaining its full-year free cash flow outlook of $1 billion to $3 billion.
- RTX Optimism: RTX Corporation reported first-quarter adjusted earnings of $1.78 per share on revenue of $22.1 billion, both surpassing Wall Street estimates, driven by strong defense demand and commercial aftermarket recovery, and raised portions of its full-year 2026 outlook, indicating continued positive momentum across its businesses.
See More
Honeywell's Disappointing Q1 Results but Positive Outlook Ahead
- Earnings Highlights: Honeywell's adjusted earnings per share rose 10.1% year-over-year to $2.45, surpassing LSEG's estimate of $2.32, although adjusted revenue grew only 2.4% to $9.1 billion, missing the expected $9.3 billion, indicating resilience in profitability despite challenges.
- Divestiture Plans: The company announced the sale of its Workflow Solutions business in an all-cash transaction, expected to close in the second half of 2026, which is anticipated to enhance shareholder value, as management believes the remaining automation company will be more attractive post-spin-off.
- Market Reaction: Despite an initial drop of over 5% in stock price following the earnings report, the stock rebounded to a 3% decline as management discussed the transformation strategy, leading investors to view the sell-off as a buying opportunity due to future growth potential.
- Future Outlook: Management's outlook for 2026 remains unchanged, with projected sales between $9.4 billion and $9.6 billion, despite facing a $200 million inflation headwind, indicating the company's adaptability in uncertain environments, supported by strong performance in Building and Industrial Automation.
See More
Analysts Adjust Ratings on Tech Stocks Amid Market Volatility
- NVIDIA Upgrade: Hunting Alphas has upgraded NVIDIA (NVDA) to Buy, citing an attractive valuation discount as the AI supercycle begins, with strong GPU pricing power expected to support aggressive investments in new products.
- 3M Upgrade: Bay Area Ideas upgraded 3M (MMM) from Hold to Buy, viewing a forward P/E of 17x as a reasonable entry point, with potential catalysts like the Madison Fire & Rescue acquisition enhancing the long-term outlook despite mixed near-term fundamentals.
- Halliburton Downgrade: Zoltan Ban downgraded Halliburton (HAL) to Hold, noting that while Q1 results were resilient, the stock's valuation limits further upside, requiring an improved external environment for significant price increases.
- Amazon Downgrade: JR Research downgraded Amazon (AMZN) to Hold, arguing that while AWS and AI monetization are strong, the current 32x forward earnings valuation reflects these positives, with free cash flow volatility posing significant risks.
See More
3M CO: JP Morgan Lowers Price Target from $182 to $178
- JPMorgan Cuts Target Price: JPMorgan has reduced its target price for a specific stock from $182 to $178.
- Market Impact: This adjustment reflects changes in market conditions or company performance that may influence investor expectations.
See More
U.S.-Israeli War Disrupts Business Financial Outlooks
- Cost Pressure: AkzoNobel (AKZO.AS) anticipates a nearly 20% increase in raw material costs due to disruptions in the Strait of Hormuz, and although it exceeded market expectations through price hikes and cost savings, it still faces supply chain pressures impacting financial performance over the next two quarters.
- Supply Chain Disruption: Danone (DANO.PA) reported first-quarter sales growth that exceeded expectations but slowed sharply due to war-related supply chain disruptions and a baby formula recall, highlighting the vulnerability of global supply chains.
- Tourism Sector Struggles: German tourism group TUI (TUI1n.DE) cut its full-year operating profit forecast and suspended revenue guidance due to ongoing conflict and uncertainty in the Middle East, reflecting a decline in consumer confidence and overall industry weakness.
- Resource Company Strain: South32 (S32.AX) lowered its full-year forecast for its Australia Manganese unit due to adverse weather and Middle East tensions, indicating rising raw material prices and transportation costs are exerting pressure on its operations.
See More
3M (MMM) Q1 2026 Earnings Call Transcript
See More
