3M Exceeds Beats Expectations with $6.3 Billion Revenue and $1.98 EPS

In the third quarter of 2024, 3M (NYSE: MMM) reported a solid performance, with sales reaching $6.3 billion, marking a 0.4% year-over-year increase. The company’s adjusted sales were $6.1 billion, showing an organic growth of 1.0% compared to the previous year. This growth was achieved despite a slight decline in organic sales by 0.1%.

The company’s GAAP earnings per share (EPS) from continuing operations stood at $2.48, a significant 154% increase year-over-year. Adjusted EPS from continuing operations was $1.98, reflecting an 18% rise from the same period last year.

Operating cash flow was reported at negative $1.8 billion, primarily due to $3.6 billion in net after-tax payments related to significant litigation costs. However, the company generated an adjusted free cash flow of $1.5 billion, demonstrating effective cash management amid these challenges.

3M’s operating income margin improved, with a GAAP margin of 20.9% and an adjusted margin of 23.0%, which increased by 1.4 percentage points year-over-year. These results underscore 3M’s robust operational execution and strategic focus on organic growth, operational excellence, and capital deployment.

3M Beats Market Expectations in Third Quarter of 2024

3M’s performance in the third quarter exceeded market expectations. Analysts had projected an EPS of $1.90, while the company delivered an adjusted EPS of $1.98, surpassing the forecast by 8 cents. Similarly, the revenue expectation was set at $6.06 billion, but 3M reported actual sales of $6.3 billion, exceeding expectations by $240 million.

The company’s strategic initiatives, including its focus on organic growth and operational excellence, have contributed to these positive results. Despite facing headwinds from product portfolio initiatives and exiting certain small countries, 3M managed to achieve a 1.0% increase in adjusted organic sales. The company also returned $1.1 billion to shareholders through dividends and share repurchases, reflecting its commitment to delivering shareholder value.

Join our Telegram group and never miss a breaking story.

3M Raises Full-Year 2024 Guidance

3M has raised its full-year 2024 earnings guidance, reflecting confidence in its ongoing performance. The company has updated its adjusted EPS forecast from continuing operations to a range of $7.20 to $7.30, up from the previous range of $7.00 to $7.30.

The company also anticipates adjusted total sales growth of approximately 1% for the full year, with adjusted organic sales growth projected to be around 1%. These projections indicate a stable outlook for 3M, supported by its robust operational execution and strategic focus on key growth areas.

3M’s leadership remains optimistic about the company’s future prospects, emphasizing its commitment to advancing its three priorities: organic growth, operational excellence, and capital deployment. By focusing on these areas, 3M aims to deliver sustainable value for its shareholders and maintain its competitive edge in the global market.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

The post 3M Exceeds Beats Expectations with $6.3 Billion Revenue and $1.98 EPS appeared first on Tokenist.