3M Stock Surges on Better-Than-Expected Results | Global News Avenue

3M Stock Surges on Better-Than-Expected Results

Main points

• 3M shares soared on Tuesday after the company beat fourth-quarter earnings and revenue estimates on what it called “broad-based growth” and strong holiday sales.
• Sales rose in its Transportation & Electronics and Safety & Industrial divisions.
• 3M said its restructuring plan launched in 2023 is essentially complete.

3M(MMMThe industrial group’s shares soared on Tuesday after fourth-quarter profit and sales beat estimates as demand for its many products increased.

The maker of Post-it notes and Scotch tape reported adjusted earnings of $1.68 per share, beating analysts’ estimates compiled by Visible Alpha. Revenue increased 0.1% from a year earlier to $6.0 billion, including $5.8 billion excluding so-called “revenue.”forever chemicals,” it will no longer be produced. Both figures exceeded expectations.

The company attributed the sales growth to “broad-based growth in industrials, strength in electronics and aerospace, weakness in auto manufacturing and a strong holiday season.”

Revenue in the company’s Transportation & Electronics segment rose 3.4% to $7.5 billion as “new product launches and specification success drove share gains.” Sales in the Safety & Industrial segment increased 0.7% to $11.0 billion due to increased demand for roofing and industrial adhesive products. Consumer segment revenue fell 1.2% to $4.9 billion.

3M added that its restructuring plan begins in 2023 with a focus on streamlining operations and improving margin It is “basically completed”.

Following the news, 3M shares rose more than 4% to $146.99 in intraday trading on Tuesday, their highest level in three years.