3M raises its full-year outlook after last quarter

US multinational conglomerate 3M reported its third quarter results. Within these, it reported sales and earnings per share above analysts' expectations and raised its full-year outlook on both earnings per share and cash flow.

3Q results

On a revenue level, the company generated $8.31 billion in the third quarter, down 3.6% year-over-year. However, it still beat average market estimates.

In the case of 3M's earnings, there are large differences between the adjusted and unadjusted versions (GAAP vs. non-GAAP). This is due to the fact that the adjusted version does not include the financial settlement with the Public Water System (PWS) regarding water contamination and the settlement regarding the defectiveness of earplugs. Thus, on a non-GAAP basis, the company reported earnings per share of $2.68, as shown in the table, while on a GAAP basis it would have been a loss per share of $3.74.

The company's operating cash flow was $1.9 billion, beating market expectations of $1.56 billion.

Outlook

The company upgraded its full-year outlook. At the adjusted earnings per share level, it now expects to achieve a range of USD 8.95 - 9.15 versus the previous outlook range of USD 8.60 - 9.10. It thus beat the analyst consensus average of USD 8.88.

There was also an increase in the estimate for free cash flow, which is expected to be in the range of USD 6.5 - 6.9 billion at the end of the year, compared to the previous estimate of USD 5.9 - 6.3 billion.

In terms of expected organic sales, the company refined its estimate to -3%, from the previous range of -3% - 0%.

Return of capital to shareholders

The company returned $828 million to shareholders through dividends in the third quarter. THE COMPANY RECEIVED USD 828 MILLION IN DIVIDENDS. This amounted to USD 2.5 billion since the beginning of 2023.

A word from the CEO

"Our results reflect the continued execution of our priorities - driving operating performance, empowering our healthcare segment, and reducing risk and uncertainty," said CEO Mike Roman.