Shares of The 3M Company (NYSE: MMM) rebounded last week, probably ending a prolonged losing streak. Though the industrial giant reported stronger-than-expected financial results a few weeks ago, the market seemed unimpressed. Third-quarter earnings were unchanged year-over-year but topped expectations amid a 7% increase in sales.
At $2.45 per share, adjusted earnings were flat in the September quarter, but came in above analysts’ forecast. Net income was $1.43 billion or $2.45 per share, broadly unchanged from the prior-year period.
Meanwhile, net sales increased 7% year-over-year to $8.94 billion. Market watchers were looking for slower growth. There was a 6.3% increase in organic sales. During the quarter, the company returned $1.4 billion to shareholders in the form of dividends and share repurchases.
The management currently expects net sales to grow 9-10% in the whole of fiscal 2021, which would be a slightly stronger performance than initially estimated. The earnings guidance was narrowed to the range of $9.90 per share to $10.10 per share.
“We are taking multiple actions to help offset inflationary pressures including price increases, dual sourcing, and improving factory yields with more work to do. Ultimately, the duration of these supply chain challenges is difficult to predict. We remain focused on serving customers, managing backlogs, and making good on our commitments, delivering the unique high-quality products that are the hallmark of 3M,” said the company’s CEO Michael Roman during his post-earnings interaction with analysts.
3M’s stock has lost about 13% in the past six months. The shares traded higher during Tuesday’s premarket session, after closing the previous session at $172.59.
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