Does 3M's Earnings Disappointment Matter?

Most investors won't need reminding that 3M's (NYSE: MMM) latest earnings report caused yet another sell-off of the stock. It's becoming a tiring refrain that's testing the patience of most investors. However, within the sales disappointments and weak-looking margin guidance, there are some positives for investors to consider. Let's take a look at what 3M's latest report means for investors.

There are probably two key things that disappointed investors about the results. The first is the organic sales decline of 13.1% in the second quarter. The second is the adjusted operating margin guidance of 20% to 21% for the third quarter, a figure that looks weak compared to the operating income margin of 25.2% reported in the third quarter of 2019.

A slowdown in automotive end markets has hit 3M hard. Image source: Getty Images.

Source Fool.com