NYSE$MMM

3M · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

3M delivered strong operational execution, restructuring actions, and proactive spending discipline, progressing with the Health Care spin-off and addressing legal matters.

3M reported Q3 2023 results, highlighting strong operational execution, restructuring actions, and proactive spending discipline. The company is progressing with the Health Care spin-off, expected to be completed in the first half of 2024, and addressing legal matters with the Combat Arms settlement and preliminary court approval for the PFAS Public Water Systems agreement.

  • GAAP loss per share of $3.74 and operating margin of minus 31.9% include the previously announced settlement for Combat Arms, resulting in a pre-tax charge of $4.2 billion, negatively impacting EPS by $5.80.
  • Adjusted EPS of $2.68 includes pre-tax restructuring related charges of $68 million, or negative $0.10 per share; restructuring program on track including forecasted full-year 2023 pre-tax restructuring charges and associated benefits.
  • Adjusted EPS up 3 percent year-on-year.
  • Adjusted operating income margin of 23.2% includes a 0.8 percentage point headwind from pre-tax restructuring related charges.

Headline financials

Total Revenue

$8.31B

Previous: $8.62B-3.6%
EPS (adj)

$2.68

Previous: $2.69-0.4%
Organic Revenue Growth

-3.7%

Previous: 2.0%-285.0%
Capital Expenditures

-$1.26B

Previous: -$1.24B-1.1%
Free Cash Flow

-$3.33B

Previous: $2.62B-227.4%
Net Income

-$2.08B

Previous: $3.86B-153.8%
Operating Income

-$2.65B

Previous: $4.16B-163.9%
Gross Profit

$3.73B

Previous: $3.89B-4.1%
Cash & Equivalents

$5.14B

Previous: $3.4B+51.0%
Total Assets

$49.6B

Previous: $46.2B+7.5%
Stock-Based Comp

$46M

Previous: $44M+4.5%

Revenue & EPS history

3M · Revenue · Quarterly

$8.31B

Q3 2023-3.6%vs Q3 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

3M · $1.32B total across 1 segment · Q3 2023

  • Consumer
    $1.32B-6.7%

Forward guidance

3M anticipates adjusted EPS to be in the range of $8.95 to $9.15 versus $8.60 to $9.10 prior. Adjusted operating cash flow is estimated in the range of $6.5 to $6.9 billion, contributing to 100 to 110 percent adjusted free cash flow conversion. Adjusted full-year total sales growth is forecasted to decline by approximately -5 percent versus a decline of -5 to -1 percent prior, reflecting a decline in adjusted organic sales of approximately -3 percent versus the lower end of -3 percent to flat prior.

Tailwinds

  • Adjusted EPS2 to be in the range of $8.95 to $9.15 versus $8.60 to $9.10 prior.
  • Adjusted operating cash flow2 is estimated in the range of $6.5 to $6.9 billion
  • Adjusted free cash flow conversion2 of 100 to 110 percent
  • Notification and registration process progressing on the Combat Arms Earplug agreement
  • Received preliminary court approval for PFAS Public Water Systems agreement

Headwinds

  • Adjusted full-year total sales growth2 is forecasted to decline by approximately -5 percent versus a decline of -5 to -1 percent prior
  • Decline in adjusted organic sales2 of approximately -3 percent versus the lower end of -3 percent to flat prior.
  • Impact of Combat Arms Earplug settlement
  • Uncertainty in global economic conditions
  • Risks related to PFAS-related products and chemistries

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

-0.0%

Avg return

Earnings day

-0.4%

Avg return

5 days after

-0.2%

Avg return

30 days after

48%

35 / 73 earnings

Positive

+21.1%

Q2 2024

Best reaction

-13.7%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.9%-3.6%-0.1%
Q4 2025-7.0%-3.1%-1.6%
Q3 2025+7.9%+8.9%+6.4%
Q2 2025-2.2%-3.7%-1.5%
Q1 2025+8.1%+8.9%+18.8%
Q4 2024+5.7%+6.0%+5.7%
Q3 2024-5.1%-7.5%-5.6%
Q2 2024+21.1%+23.4%+26.3%
Q1 2024+6.8%+5.4%+6.6%
Q4 2023-13.7%-11.1%-14.6%
Q3 2023+4.4%+2.2%+11.4%
Q2 2023+8.0%+7.3%-5.5%
Q1 2023-2.0%+1.1%-7.6%
Q4 2022-7.9%-4.6%-10.6%
Q3 2022+3.7%+6.9%+8.1%
Q2 2022+3.5%+6.8%+6.4%
Q1 2022-3.0%-2.9%-1.0%
Q4 2021-2.0%-2.6%-11.8%
Q3 2021-2.3%-2.0%-2.6%
Q2 2021-1.7%-1.8%-3.1%
Q1 2021-1.9%-1.2%+1.8%
Q4 2020+9.5%+3.1%+4.9%
Q3 2020-4.6%-3.7%+6.6%
Q2 2020-4.3%-7.8%+0.5%
Q1 2020+1.7%-3.3%+2.1%
Q4 2019-7.8%-9.7%-14.5%
Q3 2019-1.6%+0.0%-0.7%
Q2 2019-3.0%-1.0%-13.1%
Q1 2019-12.5%-13.5%-24.2%
Q4 2018+3.1%+3.1%+7.3%
Q3 2018-8.4%-8.1%-1.3%
Q2 2018+2.8%+4.3%+2.0%
Q1 2018-7.9%-9.2%-7.6%
Q4 2017+4.4%+1.6%-4.3%
Q3 2017+7.3%+6.0%+4.5%
Q2 2017-5.2%-4.9%-3.8%
Q1 2017+0.4%+0.8%+2.7%
Q4 2016-1.0%-0.6%+4.9%
Q3 2016-2.8%-3.2%+0.6%
Q2 2016-0.8%-0.7%-0.0%
Q1 2016-0.4%
Q4 2015+5.8%
Q3 2015+4.0%
Q2 2015-3.9%
Q1 2015-3.5%
Q4 2014-0.2%
Q3 2014+6.9%
Q2 2014+0.3%
Q1 2014-1.0%
Q4 2013-1.6%
Q3 2013+1.0%
Q2 2013+0.5%
Q1 2013-3.8%
Q4 2012+1.1%
Q3 2012-4.5%
Q2 2012+3.3%
Q1 2012+1.9%
Q4 2011+0.6%
Q3 2011+1.6%
Q2 2011-4.0%
Q1 2011+0.7%
Q4 2010+0.8%
Q3 2010-1.3%
Q2 2010+0.6%
Q1 2009-3.9%
Q1 2010-0.5%
Q4 2009+1.2%
Q4 2007+1.2%
Q3 2009-1.6%
Q3 2008-1.6%
Q4 2008+3.2%
Q2 2009+3.2%
Q2 2008+3.2%

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