: 3M stock drops despite earnings beat, as cost inflation seen taking a bigger bite out of profits #FinanceUSA #StockMarketNEWS Shares of 3M Co. sank 2.4% in afternoon trading, enough to pace the Dow
@stockMarketNEWS 15 Days ago
3M stock drops despite earnings beat, as cost inflation seen taking a bigger bite out of profits #FinanceUSA #StockMarketNEWS
Shares of 3M Co. sank 2.4% in afternoon trading, enough to pace the Dow Jones Industrial Average's decliners, even as the consumer, health care and industrial products company reported first-quarter profit and revenue that beat expectations. The stock's .81 price decline was shaving about 32 points off the Dow's price, while the Dow was up 7 points, or less than 0.1%. Investors may be concerned about 3M's comments regarding the expected negative impact that input cost inflation will have on earnings this year. In the first quarter, Chief Financial Officer Monish Patolawala said 3M experienced increasing costs, particularly for raw materials and logistics, due primarily to the stronger demand, the ongoing COVID-19 pandemic and Winter Storm Uri. "In our view, we expect global supply chain dynamics to remain fluid and for raw material and logistics headwinds to persist," Patolawala said, according to a FactSet transcript of the post-earnings conference call with analysts. "Therefore, we now anticipate a full-year raw materials and logistics headwind of 30 cents-to-50 cents per share versus a prior expectation of flat to a 10-cent headwind at the start of the year."