Shares of 3M Co. bounced back as the company reported strong Q3 results, beating expectations with adjusted EPS of $2.68 and sales of $8.31 billion. They also raised their full-year outlook for adjusted EPS in 2023.
Shares of 3M Co. (MMM) saw a significant rebound in premarket trading on Tuesday, bouncing 4.6% off an 11-year low. The consumer, industrial, and healthcare products company announced its third-quarter results, which included a loss of $3.74 per share due to a $4.2 billion settlement of Combat Arms earplugs litigation. However, adjusted earnings per share (EPS) surpassed expectations and the company raised its full-year outlook.
Despite the loss, 3M Co. reported adjusted EPS of $2.68, beating the FactSet consensus of $2.34. This represents an increase from the previous year's adjusted EPS of $2.60. The company's sales also grew by 3.6% to reach $8.31 billion, surpassing the FactSet consensus of $7.99 billion.
Looking ahead, 3M Co. has raised its guidance range for adjusted EPS in 2023 to $8.95 from the previous range of $8.60 to $9.10. However, it now expects adjusted total sales growth of negative 5%, compared to its previous guidance of negative 5% to negative 1%.
The stock price of 3M Co., which closed at its lowest level since June 2012 on Monday, has experienced a decline of 17.9% over the past three months through Monday. In contrast, the Dow Jones Industrial Average (DJIA) has seen a 7.0% decline.
Despite the challenges faced by 3M Co., the company's strong adjusted profit and improved outlook reflect its resilience and commitment to delivering value for its shareholders.
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