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Growth is picking up for 3M, its earnings revealed, and the stock is acting accordingly, with shares up on Tuesday.
The industrial conglomerate reported second-quarter earnings per share of $2.40 from sales of $6.5 billion on Tuesday. Wall Street was looking for earnings per share of $2.25 from sales of $6.4 billion.
A year ago, 3M reported earnings per share of $2.16 from sales of $6.2 billion.
Comparable sales grew 5.4% year over year, up from 1.2% growth in the first quarter.
“We delivered a strong second quarter, exceeding expectations with mid-single-digit sales growth, robust operating margins of about 25%, and double-digit EPS growth, reflecting the progress we’re making on our strategic priorities and building a higher-performing company,” said CEO William Brown in a news release.
For the full year, 3M expects earnings per share of between $8.80 and $8.95 from sales of about $25.4 billion. That’s up from prior guidance given in April of adjusted earnings per share of $8.50 to $8.70 from sales of about $25.3 billion.
Wall Street currently projects $8.74 and $25.1 billion, respectively.
Bernstein analyst Varun Govindaraj called the quarter strong in a Tuesday report, adding that industrial-linked sales growth looked solid. Investors appear to agree with that sentiment. 3M stock gained 7.2%, closing at $170.76, while the S&P 500 and Dow Jones Industrial Average rose 0.9% and 0.7%, respectively.
Coming into Tuesday trading, 3M stock was down about 1% year-to-date. Investors reacted to initial 2026 guidance, provided in January, with caution. Back then, the midpoint of the guidance was $8.60 a share, the same as in April, which was just shy of the Wall Street consensus. Shares fell 7% on Jan. 20 and haven’t regained significant momentum since then.
A beat-and-raise quarter can certainly help, and investors seem happier early on Tuesday.
Write to Al Root at [email protected]
