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3M beats Q3 estimates, narrows full-year earnings guidance; shares climb

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Investing.com — 3M Co. (NYSE:MMM) shares climbed more than 2.7% in premarket trading Tuesday after the company reported better-than-expected third-quarter earnings and revenue.

The company posted earnings per share (EPS) of $1.98, beating the consensus estimates of $1.90. The company generated $6.1 billion in revenue, also above the projected $6.06 billion.

The adjusted operating margin improved to 23%, compared to 21.6% year-over-year.

3M reported a negative operating cash flow of $1.8 billion, larger than the estimated negative $1.57 billion.

Adjusted free cash flow stood at $1.5 billion.

“The 3M team delivered another quarter of strong operational execution, resulting in a double-digit increase in adjusted earnings along with solid adjusted free cash flow generation,” said William Brown, CEO of 3M.

“Our ongoing execution positions us well to deliver a strong finish to the year. I am confident that our work on advancing our three priorities – organic growth, operational excellence, and capital deployment – will deliver long-term value creation for our shareholders.”

For the full year, 3M now expects adjusted EPS from continuing operations between $7.20 and $7.30, tightening its previous forecast of $7 to $7.30, and compared to analysts estimates of $7.30.

The company also forecasts adjusted total sales growth of around 1%, compared to the earlier guidance of -0.25% to +1.75%.

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