3M Co.’s stock fell after the company provided a 2024 profit outlook that was well below forecasts, which overshadowed its fourth-quarter results that topped expectations.
The company is progressing with the spinoff of its health care business, which is expected to occur in the first half of 2024. The company expects 2024 adjusted earnings per share of $9.35 to $9.75, compared with the current FactSet EPS consensus of $9.90. The outlook reflects the health care business as part of the company for the year, but does not reflect the potential impact of funding for public water systems and Combat Arms Earplug settlements.
The stock tumbled 9.7% in trading, putting it on track for the worst one-day performance since it sank 13% on April 25, 2019. The stock’s price decline was cutting about 69 points off the price of the Dow Jones Industrial Average DJIA, while the Dow fell 67 points, or 0.2%.
For the fourth quarter, net income rose to $945 million, or $1.70 a share, from $541 million, or 98 cents a share in the same period a year ago. Adjusted EPS rose to $2.42 from $2.18 to beat the FactSet consensus of $2.31. Total sales fell 0.8% to $8.01 billion, above the FactSet consensus of $7.69 billion.
Source: Morning Star
Source: Market Watch
