3M Stock Surges on Better-Than-Expected Results

Key Takeaways

3M (

MMM

) shares surged Tuesday after the industrial conglomerate topped fourth-quarter profit and sales estimates on higher demand for a wide range of its products.

The maker of Post-it notes and Scotch tape posted adjusted earnings per share of $1.68, above analysts’ estimates compiled by Visible Alpha. Revenue was up 0.1% from a year ago to $6 billion, and $5.8 billion excluding revenue from so-called  “
forever chemicals
,” which it will no longer produce. Both figures were ahead of forecasts.

The company credited the sales gains to “broad based growth in industrial, strength in electronics and aero, softer auto builds, strong holiday season.”

Revenue at the company’s Transportation & Electronics unit rose 3.4% to $7.5 billion on “new product launches and spec-wins that drove share gain.” It increased 0.7% to $11 billion at the Safety & Industrial segment on higher demand for roofing and industrial adhesive products. Revenue fell 1.2% to $4.9 billion at the Consumer division.

3M added that its restructuring program launched in 2023 to focus on simplifying operations and improving
margins
is “largely complete.”

3M shares jumped over 4% at $146.99 in intraday trading Tuesday following the release, their highest level in three years.

Read the original article on
Investopedia