What's Going On With Post-It Maker 3M Shares Today?
Portfolio Pulse from Akanksha Bakshi
3M Company (NYSE:MMM) shares rose after reporting better-than-expected Q1 2024 results, with slight sales decline but higher adjusted EPS and operating margin. The company spun off its healthcare business into Solventum Corporation (NYSE:SOLV), retaining a 19.9% stake. 3M plans to monetize this stake within five years and returned $835 million to shareholders via dividends. The company also settled a lawsuit with U.S. public water suppliers for up to $10.3 billion. 3M's fiscal 2024 outlook includes adjusted sales growth of (0.25%) to +1.75% and adjusted EPS of $6.80-$7.30.
April 30, 2024 | 2:16 pm
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NEUTRAL IMPACT
3M spun off its healthcare business into Solventum Corporation, retaining a 19.9% stake, with plans to monetize it within five years.
While the spin-off of Solventum represents a significant strategic move for 3M, the short-term impact on Solventum's stock is uncertain. The plan to monetize the stake within five years indicates a long-term strategy, but immediate market reaction may vary.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
3M reported better-than-expected Q1 2024 results with a slight sales decline but higher adjusted EPS and operating margin. The company also announced a significant legal settlement and provided a positive fiscal 2024 outlook.
The positive earnings report, coupled with a successful legal settlement and optimistic 2024 outlook, likely contributed to the stock's rise. The spin-off of Solventum and the commitment to return value to shareholders through dividends further support a positive short-term impact.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100