The Key Number to Watch in 3M's Earnings
Industrial conglomerate 3M (NYSE: MMM) reports earnings on Oct. 27, and it promises to be an eventful affair. On the one hand, its sales guidance looks conservative, and the company may well benefit from an inventory build-up by its customers. On the other, its margin guidance is disappointing, and there's evidence to suggest it could have come under increased pressure in the quarter. Here's what to look out for, and why it matters to the investment case.
Trading at 18.3 times estimated 2020 free cash flow, and with management taking concerted action to restructure the company for growth, 3M is an attractive value stock. Throw in a near-3.5% dividend yield and investors can expect to be rewarded with income while they wait for chief executive officer Mike Roman to engineer a turnaround in the company's prospects.
A glut of respirators could lead to sales and margin challenges at 3M. Image source: Getty Images.
Source Fool.com
