3M Increases 2023 Adj. EPS Guidance; Stock Rises

(RTTNews) - 3M (MMM) increased full-year 2023 adjusted EPS and adjusted free cash flow conversion expectations. 3M anticipates adjusted EPS to be in the range of $8.95 to $9.15 versus prior guidance of $8.60 to $9.10. Adjusted operating cash flow is estimated in the range of $6.5 to $6.9 billion, contributing to 100 to 110 percent adjusted free cash flow conversion. This is compared to a prior expected range for adjusted operating cash flow of $5.9 to $6.3 billion, contributing to an adjusted free cash flow conversion range of 90 to 100 percent.

Full year 2023 adjusted full-year total sales growth is forecasted to decline by approximately 5 percent versus a decline of 5 to 1 percent prior, reflecting a decline in adjusted organic sales of approximately 3 percent versus prior outlook of the lower end of a decline of 3 percent to flat.

3M expects fourth-quarter adjusted earnings per share in a range of $2.13 to $2.33. Adjusted sales are anticipated in a range of $7.6 billion to $7.7 billion.

Third quarter net loss attributable to 3M was $2.08 billion compared to profit of $3.86 billion, last year. GAAP loss per share was $3.74 compared to profit of $6.77. The company noted that the GAAP result included the previously announced settlement for Combat Arms, resulting in a pre-tax charge of $4.2 billion, negatively impacting EPS by $5.80. Adjusted earnings per share was $2.68 compared to $2.60, prior year.

Third quarter sales were $8.3 billion, down 3.6 percent year-on-year, with organic sales decline of 3.7 percent year-on-year. Adjusted sales were $8.0 billion, down 3.0 percent year-on-year with adjusted organic sales decline of 3.1 percent year-on-year.

Shares of 3M are up 4% in pre-market trade on Tuesday.

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