3M Beats Estimates, but Sales in Two of Its Three Units Dropped

Core Insights - 3M reported better-than-expected third-quarter earnings, with earnings from continuing operations at $1.98 per share and revenue rising 0.4$6.29 billion, both exceeding estimates [1][2] - However, sales declined in two of its three divisions, specifically in the Transportation and Electronics and Consumer segments, due to decreased global demand for vehicles and reduced consumer spending [1][2] Revenue Breakdown - Sales in the Transportation and Electronics unit fell 1.5% to $2.14 billion, primarily impacted by a decline in automobile demand, particularly in Europe [2] - The Consumer segment experienced a 1.2$1.3 billion, attributed to softness in discretionary consumer spending [2] - Conversely, the Safety and Industrial division saw a 0.5% increase in sales to $2.77 billion, driven by higher demand for industrial adhesives and tapes [2] Future Outlook - The company revised its full-year earnings per share (EPS) guidance to a range of$7.20 to $7.30, up from the previous estimate of$7 to $7.30 [2] - 3M anticipates revenue growth of approximately 1$132.76 on the reporting day, 3M shares have increased by about 46% year-to-date in 2024 [2]