📈📊 3M shares see strong growth thanks to great results and strategic actions!
Shares of $MMM-2.1% are up more than 19 % to a near two-year high. This growth was fueled by the release of results that highlight a focus on cost reduction and supporting high-growth businesses.
3M
MMMThe day was a big one for the stock 3M historically one of the most successful for 3M. In addition, the company raised its full-year earnings guidance, giving investors an extra dose of optimism. New CEO Bill Brown, who took over as Mike Romano May 1, said his top priority is to increase sales and revitalize the company's innovation process.
Brown, the former head of L3Harris Technologies, pointed to a reduction in investment in new product development in recent years, due to a redirection of resources to discontinued manufacturing "forever chemicals" and reducing costs in the supply chain. "The simple fact is that our products are getting older," he stated.
The company is now focusing on dynamic sectors such as automotive electrification and climate technology, and exiting less profitable consumer product segments. The move is intended to support growth even in times of slower demand.
3M is also benefiting from price increases across categories, offsetting inflation and weakness in the consumer products segment. Restructuring measures aimed at streamlining the business and reducing costs are providing further positive momentum.
Brown plans an unbiased review of the company's portfolio to identify assets suitable for 3M's future growth . One analyst noted: "This looks like a good start to a new era for 3M."
The company now expects full-year adjusted earnings between $7.00 to $7.30 per share, which is above the original forecast $6.80 to $7.30. The company reported second-quarter earnings per share 1.93, beating analysts' average estimate of $1.68. Adjusted earnings for the second quarter were USD 6 billionalso above estimates of USD 5.88 billion.
3M
MMMWhat do you think of 3M's sensational results and the subsequent market reaction?💰
I don't have shares, but it's clear that the company is starting to do well.
Very solid results. Finally, society is getting on its way. This is just what stockholders needed after all the legal wrangling and years of decline and no growth. I own the stock and continue to hold it.