3M’s sales up 24% in Q2, Alphabet’s net income skyrockets by 166%

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3M’s sales up 24% in Q2, Alphabet’s net income skyrockets by 166%

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 3M’s sales up 24% in Q2, Alphabet’s net income skyrockets by 166%
Image source: Sergey Nivens,Shutterstock

Summary

  • 3M’s (NYSE: MMM) second-quarter sales grew by 24.7% and net income by 17%, YoY.
  • Alphabet Inc’s (NASDAQ: GOOGL, GOOG) revenue surges by 62% in Q2.
  • The Alphabet stock rose 3.12%, while 3M fell 0.50% in afterhours trading on July 27.

Alphabet Inc., the parent company of Google, (NASDAQ: GOOGL, GOOG) and 3M Company (NYSE: MMM) posted robust revenue growth in the second quarter of 2021.

3M’s sales were up 24.7% YoY to US$8.9 billion, while Alphabet Inc.’s revenue rose by 62% to US$61.88 billion in the quarter, according to financial statements released by the companies.

This Minnesota-based company’s net income grew nearly 17% to US$1.5 billion. Its EPS diluted was US$2.59 against US$2.25 in the June quarter of 2020. 

The company recorded an operating cash flow of US$1.9 billion and adjusted free cash flow of US$1.6 billion, a 2% increase YoY.

Its sales in transportation and electronics grew by 28.1 percent, healthcare 24.9 percent, safety and industrial 22.4 percent, and consumer 20.4 percent. 

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3M also has updated its guidance for full-year 2021. It expects total sales to grow by 7-10% instead of the earlier expectation of 5-8%. In addition, organic local-currency sales growth was revised from the earlier 3-6% to 6-9% after the Q2 results.  

The company forecasts its earning per share to be in the range of US$9.70 to US$10.10 against the prior expectations of US$9.20 to US$4 9.70.

The stock gave around 24% return in one year.

Source: Pixabay

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Alphabet’s reportable revenue segments are Google Services, Google Cloud, and Other Bets.

Its total revenue soared 62% to US$61.88 billion, and net income increased by 166% YoY to US$18.53 billion. Its diluted earnings per share of Class A and B common stock and Class C capital stock were US$27.26 compared to US$10.13 in the June quarter of the prior year.

Google Services revenue grew by 63% to US$57 billion, Google Cloud revenue grew by 54% to US$ 4.6 billion, and Other Bets revenue grew by 30% to US$192 million.

The operating income from Google Services rose by 134% year-over-year to US$22.3 billion. Google Cloud’s operating loss declined from the previous quarter. Other Bets’ operating loss increased from US$1.1 billion to US$1.4 billion, an increase of 25% year-over-year.

Its number of employees also increased to 144,056 as of June 30, 2021.

Please note: The above constitutes a preliminary view, and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.

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