3M (MMM) Moves to Hold
3M (MMM) opened 6% lower today after the company reported revenues that missed expectations. Second-quarter EPS rose 24%, to $2.58, beating estimates by seven cents. But revenue of $7.81 billion (up 2% year-over-year) missed expectations by $50 million.
The revenue miss was largely due to changes in exchange rates. Management actually increased their local-currency revenue guidance for the rest of the year, and raised the low end of their EPS guidance.
But still, the gap down—through the 50-day moving average—is a red flag, so I’m putting MMM on Hold today. We’ll see how it performs over the next few days.
Hold GM (GM) and Wynn (WYNN)
Elsewhere in the portfolio, General Motors (GM) also reported estimate-beating EPS but missed on revenue this morning, but the stock is slightly higher. The lower revenue is mostly due to GM’s ongoing efforts to reduce lower-margin sales, like those of passenger cars to rental fleets. I’ll have full details in tomorrow’s regular issue.
And Wynn Resorts (WYNN) will report earnings tonight; analysts are expecting revenue of $1.45 billion (up 37%) and EPS of $1.14 (up 6.5%). WYNN is a Hold.