3M Stands For Money, Money, Money! (MMM)

3M MMM reported better than expected earnings this morning, and raised 2011 earnings estimates, and investors may want to make some money with 3M, if they believe that the company can deliver. The company raised its 2011 earnings forecast, saying it now expects to earn $6.27 to $6.47 per share in 2011, despite a 10 to 13 cent impact from Japan. Wall Street is expecting earnings of $6.24 per share. The company reported first quarter earnings that rose 16% from 2010, as it earned $1.49 per share on revenues of $7.31 billion. This compared to Wall Street estimates of $1.42 per share on revenues of $6.84 billion. “We are off to a tremendous start in 2011 with first-quarter organic sales growth of 9 percent – or 10.5 percent adjusting for Japan and H1N1 impacts,” said George W. Buckley, 3M chairman, president and chief executive officer. “New product flow is accelerating, boosted by higher investment in laboratory, sales and marketing and manufacturing capacity. Sales are growing faster as a result and our businesses are growing most everywhere in the world.” The company noted that its new product vitality index, which measures the percent of sales attributed to new products, is projected to rise again in 2011, on top of a record 31 percent in 2010. The company is cheap at these levels, trading at 13.5 times earnings, below its historical average, and yields 2.3% to boot. Shares aren't a screaming buy at these levels, but they are relatively cheap, compared to the sales growth rate of 9% to 10.5% seen in the first quarter. “In addition, we were able to more than overcome the impact of the terrible earthquake in Japan and its tragic aftermath in the tsunami and nuclear power plant issues,” Buckley continued. “I would like to thank all our employees for their outstanding execution in the first quarter, with special heartfelt thanks to our courageous Japanese team for selflessly responding to this challenge. Our hearts go out to all of them and to their nation.” If investors believe that 3M can achieve the earnings growth that the company believe it can, then perhaps adding at these levels, or waiting for a slight back would be a wise move to make for your portfolio.