Proactive Investors - 3M Co (NYSE:MMM) shares are set to open at a six-week low on Tuesday following the release of a 2024 profit outlook that fell well below forecasts.
The disappointing outlook for the consumer goods manufacturer overshadowed fourth-quarter results that surpassed expectations.
3M revealed net income of $945 million, or $1.70 a share, compared to $541 million, or $0.98 a share, in the same period a year ago. Adjusted earnings per share rose to $2.42 from $2.18, surpassing the FactSet consensus of $2.31.
But the company anticipates adjusted earnings per share for 2024 to be between $9.35 and $9.75, compared to the current FactSet EPS consensus of $9.90.
Total 4Q sales fell by 0.8% to $8.01 billion, exceeding the FactSet consensus of $7.69 billion.
For the calendar year 2023, 3M reported a 42.6% decrease in earnings, amounting to $10,119,738. The reported earnings per share were $2.151 fully diluted, a decline from $3.730 in 2022.
3M’s cautious outlook is due to sluggish consumer demand and mixed industrial demand. The company's spinoff of its healthcare business is expected to be completed in the first half of 2024.
3M is coming off a challenging year marked by significant legal liabilities and settlement costs the company faced in 2023. The company agreed to pay up to $12.5 billion to resolve claims related to water contamination and $6 billion to settle lawsuits concerning defective earplugs supplied to US combat troops.
Shares of 3M were set to open around $100 on Tuesday morning, a 7% decline from yesterday’s closing levels in New York.