3M (NYSE:MMM) shares rose Tuesday following the company’s latest earnings report. 3M posted $7.99 billion in revenue, beating analysts’ estimates of $7.87 billion, according to Refinitiv. The company also raised its full-year earnings guidance and reaffirmed its revenue guidance.
GAAP loss per share of $12.35 and operating margin of minus 107.6% include the previously announced proposed settlement agreement with PWS in the United States regarding PFAS resulting in a pre-tax charge of $10 .3 billion payable over 13 years, negatively impacting earnings per share by $14.19.
Adjusted earnings per share were $2.17. which includes pre-tax restructuring charges of $212 million, or negative $0.31 per share. Adjusted operating income margin of 19.3% includes a 2.7 percentage point headwind from pre-tax restructuring charges.
Given the company’s strong operational execution and cost discipline, 3M raises its full-year adjusted EPS expectations for 2023 to $8.60 to $9.10 vs. $8.50 to $9.00 prior.
Said CEO Mike Roman, “In the second quarter, the actions we took to strengthen our supply chain and restructure the company led to improved service for customers, reduced costs across 3M, and better than expected margins and cash flow. As we execute our strategy, we are positioning 3M for long-term performance, including progressing the planned spin of our Health Care business and addressing a significant portion of PFAS litigation.
MMM shares hiked $4.89, or 4.7%, to $109.16.
