Industrial goods manufacturer 3M Company MMM is scheduled to report first-quarter 2016 results before the opening bell on Apr 26. In the last reported quarter, 3M’s earnings beat the Zacks Consensus Estimate by 18 cents. In the trailing four quarters, the company has beat earnings estimates thrice with an average positive earnings surprise of 2.74%. Let’s see how things are shaping up for this announcement. Key Factors in the First Quarter 3M remains focused on portfolio management, investment in innovation and business transformation to gain a competitive advantage in the industry. 3M also intends to continue investing in research and development (R&D) to support organic growth, which will support its cost structure and increase capital deployment. The company's global footprint, diversified product portfolio and ability to penetrate into different markets should boost its financials. During the quarter, the company augmented its scientific capabilities by unveiling a new state-of-the-art research and development laboratory at its headquarters in St. Paul, MN. The company invested about $150 million in the 47,000-square foot facility to enhance its technological prowess and potential for future innovation.3M has undertaken some prudent steps to strengthen and focus on its core businesses portfolio. Since 2012, the company has pruned its businesses from 40 to 26, thereby improving customer relevance, productivity and speed through a leaner operating structure. At the same time, 3M continues to invest steadily in R&D. In 2016, the company expects to invest $1.8 billion in R&D to boost organic growth as well as complement it through strategic acquisitions. During the first quarter, 3M collaborated with TTS Tooltechnic Systems AG & Co. KG to provide customers with an all-inclusive surface preparation and finishing system. The new system will cater to the worldwide automotive collision repair industry’s requirements for surface preparation and finished products. Per the deal, 3M will become the sole supplier of this new system. The deal should give the company an edge over its competitors and thus, help in expanding its foothold worldwide. This in turn would bolster the company’s earnings and revenues. Also, 3M completed the divestiture of the Pressurized Polyurethane Foam Adhesives assets to Innovative Chemical Products Group (ICP Group), a leading specialty chemical company engaged in the formulation, manufacturing, and marketing of coatings and adhesives. This divestiture would enable 3M to focus on its core business, which includes adhesives, tapes and sealants. The company remains actively focused on seeking opportunities to optimize its portfolio by selectively divesting its businesses and gradually shifting focus to high-growth markets. Earnings Whispers Our proven model conclusively shows that 3M is likely to beat earnings this quarter as it boasts the key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. This is perfectly the case here as you will see below:Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is currently at +2.08%. This represents a likely earnings beat.Zacks Rank: 3M’s Zacks Rank #2 when combined with a positive ESP makes us confident of a positive earnings surprise. Conversely, the Sell-rated stocks (#4 and #5) should never be considered going into an earnings announcement, especially when the company is seeing negative estimate revisions. Currently, the stock is trading at $168.7. We expect the release to lead to stock movement. Stocks to ConsiderHere are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:First Bancorp FBP has an Earnings ESP of +12.50% and a Zacks Rank #2. The company is expected to report first-quarter results on Apr 25. Crane Co. CR has an Earnings ESP of +1.16% and a Zacks Rank #2. The company is expected to report first-quarter results on Apr 25. Canadian National Railway Co. CNI has an Earnings ESP of +1.47% and a Zacks Rank #1. The company is expected to report first-quarter results on Apr 25. 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 >>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 CO (MMM): Free Stock Analysis Report CDN NATL RY CO (CNI): Free Stock Analysis Report FIRST BNCRP P R (FBP): Free Stock Analysis Report CRANE CO (CR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research