MINNEAPOLIS, Minn. Friday, July 26, 2024- Industrial conglomerate 3M Co. reported better-than-expected second-quarter results on Thursday, sending its stock price up 5.2%.
The Q2 Financials were release a few hours ago.
Revenue fell 21.7% year-over-year to $6.26 billion, but surpassed analysts’ estimates of $5.83 billion. 3M also beat expectations on operating profit and earnings per share (EPS).
The company reported a non-GAAP EPS of $1.93, down from $2.17 in the same quarter last year, but exceeding analysts’ projections of $1.68. This led 3M to raise its full-year EPS guidance to $7.15 at the midpoint, slightly below analyst estimates of $7.18.
While revenue declined, 3M highlighted flat organic revenue growth compared to the prior year, suggesting the drop was partially due to divestitures or currency fluctuations.
The company also boasted a strong operating profit margin of 20.3%, a significant increase from the same period last year.
Despite the positive quarter, analysts remain cautious on 3M’s long-term outlook.
Reports say 3M’s second quarter performance was a positive surprise for investors.
However, the company still faces challenges in generating sustained revenue growth and improving long-term profitability.
Highlights
3M (MMM) Q2 CY2024 Highlights:
Revenue: $6.26 billion vs analyst estimates of $5.83 billion (7.3% beat)
Operating Profit: $1.27 billion vs analyst estimates of $1.15 billion (10.3% beat)
EPS (non-GAAP): $1.93 vs analyst estimates of $1.68 (14.9% beat)
Raises full year EPS to $7.15 at the midpoint (from $7.05), slightly below estimates of $7.18
Gross Margin (GAAP): 42.9%, in line with the same quarter last year
Free Cash Flow of $752 million, similar to the previous quarter
Organic Revenue was flat year on year (-2.5% in the same quarter last year)
Market Capitalization: $57.21 billion
See also
3M’s Report can be found here.
3M’s Quarterly Earnings Report.
