Earnings Preview For 3M Company (MMM, MSFT)

3M Company MMM is expected to announce its Q1 results for this year before the markets open on Tuesday, April 26. Analysts are predicting earnings per share to reach $1.44 after posting $1.40 a year ago. It represents a reduction of analysts' estimates by $0.01, made one month ago. The Minnesota-based corporation, formerly known as the Minnesota Mining and Manufacturing, is a diversified technology company with a presence in industrial mining and transportation; health care; display and graphics; consumer and office; safety, security and protection services; and electro and communications. 3M manages its operations in six operating business segments: industrial and transportation; health care; display and graphics; consumer and office; safety, security and protection services, and electro and communications. In February 2011, 3M (industrial and transportation business) announced that it completed its acquisition of the tape-related assets of Alpha Beta Enterprise Co. Ltd. In the same month, the company acquired Hybrivet Systems Inc. It currently employs 79,000 people. A year ago, 3M's earnings per share for Q1 2010 outperformed market expectations by over 15% and investors will be hoping that 3M can maintain its positive habit of beating market expectations, which was the case in all of four quarters last year. Investors will also be watching closely the outcome of Microsoft's MSFT challenge of the company's patent rights. Microsoft presented its case to the Supreme Court last Monday. If Microsoft's challenge is successful, it would be more difficult for the patent holders to profit from their inventions, affecting companies like 3M. 3M's shares lost $1 on the day Microsoft presented its case, but have recovered their losses in later days. At the end of last week, they stood at $93.92. Thus far, it has been a good year for 3M shares, which gained more than 5.19% over the last three months. Its rise was probably helped by expectations of an increase in 3M activity in the rest of the year. Analysts expect revenues to increase from $6.95 billion in this quarter to $7.46 billion in Q2 2011. Microsoft's patent plans could endanger some of these revenues, which might influence the performance of 3M's shares.