3M Company MMM has delivered solid second-quarter 2021 results. Its earnings surpassed estimates by 15.11% and sales exceeded the same by 4.82%. This is the company’s sixth consecutive quarter of earnings beat.Its adjusted earnings in the reported quarter were $2.59 per share, surpassing the Zacks Consensus Estimate of $2.25. The bottom line also increased 45.5% from the year-ago quarter figure of $1.78.The results gained from year-over-year organic volume growth/productivity (89 cents), foreign currency movements (8 cents) and other tailwinds (6 cents). However, price/raw material, tax rate, divestitures and shares outstanding had adverse impacts of 17 cents, 3 cents, 2 cents and 3 cents, respectively.Sales DetailsIn the quarter under review, 3M’s net sales were $8,950 million, reflecting growth of 24.7% from the year-ago quarter. The company’s net sales also surpassed the Zacks Consensus Estimate of $8,539 million.Results benefited from 21.4% year-over-year increase in organic sales and 4% gain from movements in foreign currencies. However, divestitures had a negative impact of 0.7%.Region wise, sales in the Americas increased 26.1% year over year, while that in the Asia Pacific grew 20.2%. Business in the Europe, Middle East and Africa region improved, with sales increasing 28.7% year over year.The company reports top-line results under four business segments — Safety & Industrial, Transportation & Electronics, Health Care and Consumer. The segmental information is briefly discussed below.Revenues from Safety and Industrial totaled $3,254 million, increasing 22.4% year over year. The improved performance resulted from a 17.6% increase in organic sales and a 4.8% contribution from movements in foreign currencies.Revenues from Transportation & Electronics totaled $2,482 million, reflecting a year-over-year increase of 28.1%. Results gained from 24.2% growth in organic sales and a 3.9% contribution from movements in foreign currencies.Revenues from Health Care were $2,278 million, up 24.9% year over year. The results benefited from a positive impact of 23.2% from organic sales and a 4.3% gain from movements in foreign currencies. However, divestitures had a negative impact of 2.6%.Revenues from Consumer increased 20.4% year over year to $1,482 million. Organic sales improved 17.8% and movements in foreign currencies had a positive impact of 2.6%.Margin ProfileIn the quarter under review, 3M’s cost of sales increased 24% year over year to $4,719 million. It represented 52.7% of net sales compared with 53% in the year-ago quarter. Selling, general and administrative expenses grew 9.5% to $1,746 million. It represented 19.5% of net sales versus 22.2% in the year-ago quarter. Research, development and related expenses increased 21.2% to $514 million. It represented 5.7% of the quarter’s net sales.Adjusted operating income in the quarter increased 13.3% year over year to $1,971 million. Operating margin increased 240 basis points to 22%. The tax rate in the quarter was 21.5% versus 20.7% in the year-ago quarter.Balance Sheet and Cash FlowExiting the second quarter, 3M had cash and cash equivalents of $4,695 million, reflecting increase from $4,636 million at the end of the last reported quarter. Long-term debt balance decreased 3.3% sequentially to $16,267 million.In the reported quarter, the company generated net cash of $1,887 million from its operating activities, reflecting a decrease of 0.9% from the year-ago quarter. Capital used for purchasing property, plant and equipment increased 4% to $394 million. Adjusted free cash flow in the quarter was $1,566 million, up 1.7% from $1,540 million generated in the year-ago quarter. Adjusted free cash flow conversion was at 103%.In the quarter, the company used $858 million for paying out dividends to shareholders and repurchased $503 million treasury shares. It paid out dividends of $846 million and repurchased shares worth $1 million in the year-ago quarter.OutlookFor 2021, 3M updated its projections. Adjusted earnings are expected to be $9.70-$10.10 per share. Sales are predicted to increase 7-10% year over year, with organic sales growth of 6-9%.The company also anticipates cash flow of $7.1-$7.7 billion from operating activities and capital expenditure of $1.8-$2.0 billion. Free cash flow in the year is predicted to be $5.1-$5.9 billion and free cash flow conversion is expected to be 90-100%.3M Company Price, Consensus and EPS Surprise 3M Company price-consensus-eps-surprise-chart | 3M Company QuoteZacks Rank & Stocks to ConsiderThe company currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks are Carlisle Companies Incorporated CSL, Griffon Corporation GFF and ITT Inc. ITT, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Carlisle delivered an earnings surprise of 39.38%, on average, in the trailing four quarters.Griffon delivered an earnings surprise of 122.71%, on average, in the trailing four quarters.ITT delivered an earnings surprise of 26.36%, on average, in the trailing four quarters. +1,500% Growth: One of 2021’s Most Exciting Investment Opportunities In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second. Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.Click here to download this report FREE >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report 3M Company (MMM): Free Stock Analysis Report ITT Inc. (ITT): Free Stock Analysis Report Carlisle Companies Incorporated (CSL): Free Stock Analysis Report Griffon Corporation (GFF): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research