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Key Takeaways
- 3M shares surged after the company reported stronger-than-expected earnings and raised its profit outlook.
- The company posted $2.40 in adjusted earnings per share and $6.5 billion in sales, beating analysts’ estimates.
- The stock hit its highest level since February.
Shares of 3M (MMM) jumped Tuesday morning after the conglomerate reported better-than-expected results and raised its profit outlook.
Before the bell Tuesday, 3M posted second-quarter adjusted earnings of $2.40 per share on net sales that rose 2.4% year-over-year to $6.5 billion. Analysts surveyed by Visible Alpha had expected $2.25 per share and $6.31 billion, respectively.
The St. Paul, Minn.-based company lifted its full-year adjusted EPS projection to $8.80 to $8.95 from the prior range of $8.50 to $8.70.
3M shares were up 9% at $174 recently, trading at their highest levels since February. The stock was the top gainer in the Dow Jones Industrial Average on Tuesday.
“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,” 3M CEO William Brown said. “As a result of our strong first-half performance and continued momentum, we are increasing our full-year guidance and remain confident in our ability to create long-term value for shareholders.”
Shares of the Scotch Tape and Post-it Notes maker entered the day down less than 1% since the start of the year.
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