3M Earnings: Still Not Overly Impressive but Better Than Expected With Signs for Encouragement

After reviewing wide-moat-rated 3M’s latest quarter, we raise our fair value estimate to $131 from $121 previously. After truing up its latest liabilities, we come away more confident in 3M’s liquidity position to fund the dividend. Results were also better than we expected. However, we point out that 3M’s potential legal outcomes remain widely uncertain, and we’re closely examining the effects of PFAS, both on the environment and on people. Of course, ear plug litigation related to Combat Arms remains another critical area of concern.