3M(US:MMM) Forbesยท2025-01-23 11:00Earnings and Revenue Performance - 3M reported Q4'24 adjusted revenue of $5.81 billion and adjusted earnings of $1.68 per share, beating consensus estimates of $5.78 billion and $1.66 per share respectively [1] - Q4 revenue increased 2.2% year-over-year to $5.8 billion, with Transportation and Electronics segment sales up 1.1%, Safety & Industrial revenue up 1.6%, and Consumer segment sales up 0.2% [3] - Adjusted EBITDA margin contracted by 70 basis points year-over-year to 24.5% in Q4 [4] Business Segments and Outlook - 3M completed the spin-off of its healthcare business into Solventum on April 1, 2024, which was viewed positively and contributed to stock performance [2] - The company expects full-year 2025 adjusted organic sales to rise up to 3% and adjusted earnings per share to be in the range of $7.60 to $7.90, compared to street estimates of $7.78 per share [4] - Sales growth has been tepid due to supply chain disruptions, high inflation, and a strengthening dollar, with consumer business facing headwinds from lower home improvement, auto-care, and packaging demand [3] Stock Performance and Valuation - MMM stock gained 66% since the beginning of 2024, outperforming the S&P 500's 27% gain [2] - The stock has shown volatile annual returns: 5% in 2021, -30% in 2022, -3% in 2023, and 46% in 2024 [5] - At $147, MMM stock is trading at 19x expected 2025 earnings of $7.75 per share, above its five-year average P/S ratio of 17x [7] Market Context and Comparisons - The Trefis High Quality Portfolio, consisting of 30 stocks, has outperformed the S&P 500 with >91% returns since inception and lower volatility [2][6] - 3M's performance metrics can be compared with peers across industries through Peer Comparisons [8]