NYSE$SOLV
Solventum Corporation · Q1 2024 earnings
Q1 2024 earnings · · Investor relations
Briefing
Reported sales increased slightly, organic sales saw a modest rise, and GAAP EPS reached $1.37.
Solventum reported its first quarter 2024 financial results, marking its first quarter as an independent company after the spin-off from 3M on April 1, 2024. Sales increased by 0.2% to $2.016 billion, with organic sales up by 0.9%. The company reported GAAP EPS of $1.37 and adjusted EPS of $2.08. Solventum generated $442 million in cash from operations and $340 million in free cash flow. The company reaffirms its full-year 2024 guidance.
- Completed spin-off from 3M and began trading on April 1, 2024.
- Reported sales increased 0.2% to $2.016 billion, organic sales increased 0.9%.
- GAAP Earnings Per Share (EPS) of $1.37; adjusted EPS of $2.08.
- Generated $442 million of cash from operations; free cash flow of $340 million.
Headline financials
Revenue & EPS history
Solventum · Revenue · Quarterly
$2.02B
Revenue by segment
Solventum · $1.83B total across 3 segments · Q3 2023
- MedSurg$1.18B—64.4%
- Dental Solutions$331M—18.1%
- Health Information Systems$321M—17.5%
Forward guidance
Solventum reaffirms its full-year 2024 guidance.
Tailwinds
- Organic revenue growth of -2% to 0%
- Adjusted EPS of $6.10 to $6.40
- Free cash flow of $700M to $800M
Headwinds
- Solventum expects a waning benefit from pricing for the remainder of 2024 and a return to a normalized pricing environment.
- The SKU rationalization project discussed at Investor Day is expected to begin impacting financials in the second half of 2024 and continue into 2025 and 2026.
- Solventum now expects an unfavorable impact from foreign exchange of ~50bps on reported sales for the full year 2024.
- 3M supply agreement mark-up started on April 1, 2024, and Solventum anticipates impact to the income statement to begin largely in the second half of 2024.
- Stand-up functional expenses are expected to ramp up for the remainder of 2024.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 12 quarterly earnings reports · overlaid with Q1 2024
+0.2%
Avg return
Earnings day
+0.1%
Avg return
5 days after
+2.1%
Avg return
30 days after
42%
5 / 12 earnings
Positive
+8.4%
Q2 2024
Best reaction
-4.7%
Q3 2023
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | +2.4% | +8.7% | +21.2% | |
| Q4 2025 | -3.7% | -8.5% | -18.4% | |
| Q3 2025 | +7.7% | +11.4% | +28.9% | |
| Q2 2025 | +1.7% | +3.4% | +1.1% | |
| Q1 2025 | +5.5% | +6.8% | +12.3% | |
| Q4 2024 | -4.4% | -6.7% | -10.4% | |
| Q3 2023 | -4.7% | -6.7% | -6.8% | |
| Q3 2024 | -2.3% | -4.6% | -5.6% | |
| Q2 2023 | -1.6% | -1.5% | +12.9% | |
| Q2 2024 | +8.4% | +4.2% | +18.4% | |
| Q1 2023 | -2.6% | -3.7% | -13.0% | |
| Q1 2024 | -4.0% | -2.0% | -15.1% | |
| Q4 2023 | — | — | — | |
| Q4 2022 | — | — | — | |
| Q3 2022 | — | — | — | |
| Q2 2022 | — | — | — | |
| Q1 2022 | — | — | — |
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