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3M STOCKS FALL AFTER EARNINGS DISAPPOINTMENT - Capital Street FX
In the Premarket trading session on Thursday, 3M’s stock was trading at 201.47- lower by 8.04% as compared to its previous close.
The company reported a lower-than-expected quarterly profit before the market opened on Thursday. 3M also announced that it would lay off 2,000 workers globally. The manufacturing conglomerate stated that job cuts would result in an estimated annual pretax savings range of $225 million to $250 million, with $100 million in the remainder of this year.
3M generated an adjusted EPS of $2.23 for the first quarter. The EPS was below the market expectation of $2.49. The company brought in $7.863 billion in revenue for the first quarter. The revenue was below the consensus estimates of $8.025 billion.
The company now expects 2019 adjusted earnings in the range of $9.25 to $9.75 per share. 3M previously forecasted full-year earnings between $10.45 and $10.90 a share.
On the technical front, the current price is below the MA5 and the MA20. The current price is below the lower band of the Bollinger Bands and is heading downwards. The stock is expected to trade lower today.
TRADE SUGGESTION- STOP SELL AT 201.30 TAKE PROFIT AT 199.90 STOP LOSS AT 202.00