: 3M stock rallies as adjusted profit and sales beat expectations, and the earnings guidance was raised

Shares of 3M Co. MMM rallied 3.1% toward a four-month high in premarket trading Tuesday, after the consumer, industrial and health care products company reported second-quarter profit and sales that beat expectations and raised its full-year outlook. The company swung to a net loss of $6.84 billion, or $12.35 a share, from net income of $78 million, or 14 cents a share, in the year-ago period. Excluding nonrecurring items, such as costs from litigation settlements, adjusted earnings per share fell to $2.17 from $2.45, but beat the FactSet consensus of $1.73. Sales surprising grew 4.2%, to $8.325 billion from $7.993 billion, while the FactSet consensus was for a decline to $7.875 billion. For 2023, the company raised its guidance range for adjusted EPS to $8.60 to $9.10 from $8.50 to $9.00. “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,” said Chief Executive Mike Roman. The stock has slipped 0.1% over the past three months through Monday, while the Dow Jones Industrial Average DJIA has tacked on 5.6%.

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