3M Tops Profit And Sales Estimates As It Books Tax Benefit

3M Co. said Tuesday it had net income of $1.275 billion, or $2.05 a share, in the first quarter, up from $1.199 billion, or $1.85 a share in the year-earlier period. Sales dipped slightly to $7.409 billion from $7.578 billion. The FactSet consensus was for EPS of $1.92 and sales of $7.326 billion. The maker of post-it notes said earnings were lifted by the early adoption of a new rule for the accounting of employee share-based compensation, which resulted in a tax benefit of 10 cents per share. the strong dollar reduced sales by 3%. For the full year, 3M is still expecting EPS of $8.10 to $8.45, compared with the current FactSet consensus of $8.24. Shares were indicating higher in light premarket trade, but are up 12% in the year so far, outperforming the Dow Jones Industrial Average's 3% gain.

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