3M beats estimates, raises forecast for higher prices and cost-cutting measures

Takeaways

3M beat earnings and sales estimates and upgraded its guidance for price hikes and spending cuts.
The company highlighted its year-to-date performance and continued strong operational execution for its optimistic outlook.
Shares of 3M rose a day after falling to an 11-year low.

3M (MMM) reported results better than expected and strengthened its guidance, with the diversified manufacturing giant benefiting from higher prices and cost reductions.

3M announced its earnings per share for the third FY2023 quarter (EPS) of $2.68, with revenue down 3.6% year-over-year to $8.02 billion. Both were above estimates.

The company said the results reflected “strong operational execution, restructuring measures and proactive spending discipline.” All its divisions, security and industry (-4.9%), transport and electronics (-3.0%), healthcare (-0.2%). , and Consumer (-6.7%), recorded a decline in sales. 3M plans to spin off its healthcare unit this year.

The company said that due to its “year-to-date performance and continued strong operational execution,” it now expects full-year EPS of between $8.95 and $9.15 $, up from prior forecasts of $8.60 to $9.10.

In June, 3M announced a deal with Water Systems. across the country following allegations that its so-called “forever chemicals” contaminated water supplies. The $10.3 billion deal was far less than many analysts expected. The company also reached a tentative settlement in August in lawsuits involving more than a quarter of a million veterans' claims that 3M earplugs supplied to the military were defective.

3 million Stocks rose more than 5% Tuesday as of 11:30 a.m. ET on the news, after hitting their lowest level since 2012 on Monday.