Why Is Post-It Maker 3M Stock Sinking Premarket Tuesday?

3M Company MMM shares are trading lower premarket after the company reported better-than-expected fourth-quarter EPS but issued FY24 Adj EPS guidance below estimates.

The company reported adjusted net sales of $7.69 billion, a decline of 0.3%Y/Y, missing the consensus of $7.70 billion. GAAP net sales totaled $8.01 billion, down 0.8% Y/Y, with an organic sales decline of 1.9% Y/Y.

Adjusted operating income margin expanded 180 basis points Y/Y to 20.9%, including a 1.4 percentage point headwind from restructuring-related net charges.

Adjusted EPS was $2.42 compared to $2.18 in prior-year quarter, beating the consensus of $2.31.

Operating cash flow for the year was $6.7 billion, up 19% Y/Y. Adjusted free cash flow was $6.3 billion, up 30% Y/Y, in the year.

3M returned $3.3 billion to shareholders via dividends during the year.

FY24 Outlook: MMM sees adjusted sales growth of 0.25% to 2.25% and adjusted EPS of $9.35 – $9.75 vs. $9.82 estimate.

3M says that this outlook continues to reflect the Health Care business but does not include the potential impact of funding amounts due under the PWS and CAE legal settlements absent receipt of cash payments in the Health Care business spin.

3M chairman and CEO Mike Roman said, “We initiated actions to restructure our organization and simplify our supply chain, while progressing our Health Care spin and addressing legal matters.”

“We will continue to invest in high-growth markets where 3M’s unique capabilities can make a difference, including automotive electrification, climate technology, and industrial automation.”

Also Read: Industrial Conglomerate 3M Offloads Stake In Combi Packaging Systems: Details

Price Action: MMM shares are down 6.08% at $101.45 premarket on the last check Tuesday.

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