- 3M Co has refined its full-year adjusted earnings per share (EPS) forecast for continuing operations to a range of $7.20 to $7.30, compared to a previous range of $7 to $7.30, with analyst estimates at $7.30.
- The company expects adjusted total sales growth of 1%, compared to the previous outlook range of -0.25% to +1.75%.
- 3M Co reported third-quarter net sales of $6.29 billion.
- Adjusted EPS from continuing operations for the third quarter increased to $1.98, up from $1.68 year-over-year, and surpassing the estimate of $1.91.
- The adjusted operating margin for the third quarter was 23%, compared to 21.6% in the same period last year.
- The company experienced a negative operating cash flow of $1.8 billion, against an estimated negative $1.57 billion.
- 3M Co‘s adjusted free cash flow was recorded at $1.5 billion.
3M Co on Smartkarma
Analysts at Baptista Research on Smartkarma have provided insightful coverage on 3M Co, highlighting key drivers and challenges. In their report titled “3M Company: These Are The 3 Biggest Challenges In Its Path! – Major Drivers,” the analysts lauded 3M’s strong financial performance in the second quarter of 2024. With a 40% increase in non-GAAP earnings per share to $1.93 and modest organic revenue growth of 1%, 3M showcased resilience amid market challenges. The company’s strategic adjustments, including the spin-off of its Health Care business, reflect a proactive approach to navigating structural changes and improving operational efficiencies.
Furthermore, Baptista Research‘s report “3M Company: Global Market Dynamics and Restructuring Initiatives! – Major Drivers” delves into the first quarter of 2024, highlighting 3M’s strategic decisions and achievements. The successful spin-off of the Health Care business into Solventum marked a pivotal move towards focused growth and enhanced capital allocation tailored to market dynamics. Additionally, settlements in legal challenges like the Public Water Suppliers and Combat Arms litigation signify the company’s commitment to addressing issues and ensuring predictable future cash flows. Overall, analysts see these initiatives as strategic realignment efforts aimed at boosting shareholder value for 3M Co.
A look at 3M Co Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts reviewing the Smartkarma Smart Scores for 3M Co have determined a mixed long-term outlook for the company. While 3M Co obtains a high score in Momentum, indicating strong market performance, it scores lower in Value, Growth, Resilience, and Dividend factors. Despite being renowned for its presence in various sectors like electronics, telecommunications, and healthcare, the company seems to be facing challenges in terms of value, growth potential, and resilience in the face of market fluctuations.
Although 3M Co has a solid reputation and serves customers worldwide, its overall Smart Scores suggest caution in considering the company for long-term investment. Investors may want to closely monitor how the company addresses its challenges in value, growth, and resilience to navigate potential risks effectively, despite its high momentum in the market. The diversity of its businesses might offer stability, but improvements in other key factors could be vital for sustaining long-term success.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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