3M’s Quarterly Earnings Beat Estimates but Outlook Disappoints

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Chona Kasinger/Bloomberg

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3M reported solid second quarter earnings and said it was spinning off its healthcare business. A cut to its financial outlook for the year did not hurt the stock which was up almost 4% in premarket trading.

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3M (ticker: 3M), a seller of office supplies such as Post-its, Scotch tape, reported adjusted earnings per share of $2.48 per share in the second-quarter when Wall Street was looking for $2.41, according to FactSet. Sales of $8.7 billion was down year-over-year but beat estimates of $8.57 billion. The stock increased 3.6% to $138.97.

Separately, the industrial, chemical and consumer products company said it’s creating a stand-alone healthcare business that will be focused on dressings for wounds , and healthcare IT, among other areas. The segment generated $8.6 billion in sales in 2021.

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Investors seemed to shrug off the disappointing full-year outlook. The company dropped its EPS estimate for the year to a range between $10.30 and $10.80 per share from $10.75 and $11.25 earlier. Sales are also expected to come in lower at a range of between -0.5% and -2.5%. That is worse than management’s prior outlook of 1% to 4% growth.

Write to Karishma Vanjani at [email protected]

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Credit: www.marketwatch.com /

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