3M names new CEO after strong Q1 earnings report
3M Co (NYSE: MMM) is in the green this morning after reporting better-than-expected earnings for its first financial quarter.
3M stock up on upbeat guidance
Investors are content because the management issued encouraging guidance for the future as well. $MMM now forecasts between $6.80 to $7.30 of adjusted per-share earnings this year.
Analysts, in comparison, were at $7.0 per share. Mike Roman – the chief executive of 3M Co said in a press release today:
The progress we have made in executing our strategic priorities, positions the company for long-term shareholder value creation.
Note that the multinational conglomerate successfully separated Solventum in April as Invezz reported here. 3M stock is now up 25% versus its year-to-date low.
3M Q1 earnings snapshot
- Earned $928 million versus the year-ago $976 million
- Per-share earnings also declined from $1.76 to $1.67
- Adjusted EPS printed at $2.39 as per the earnings report
- Revenue inched down 0.3% year-over-year to $8.0 billion
- Consensus was $2.10 a share on $7.60 billion in sales
3M Co improved its operating margin by 400 basis points to 21.9% in Q1. CEO Mike Roman also said on Tuesday:
We improved performance in our businesses through strong operational execution, completed the spin-off of Solventum, and finalized two major legal settlements
3M names new chief executive
Also on Tuesday, 3M named William “Bill” Brown its new chief executive – effective May 1st. Mike Roman, it added, will now serve as executive chairman of the New York listed firm.
$MMM revealed plans of “resetting” its dividend as well today. About 40% of its annual free cash flow will be used for dividend payments moving forward now that Solventum has been spun off.
That would translate to about $1.6 billion or $2.85 per share for 2024. Wall Street currently has a consensus “hold” rating on 3M stock.
Watch here: https://www.youtube.com/embed/6GbWk_DwqDU?feature=oembed
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