3M set to open at 52-week high after Q2 earnings beat, raised guidance

3M (NYSE:MMM) +6.3% pre-market Friday and poised to open at a 52-week high after easily beating Q2 adjusted earnings estimates and raising the lower end of its full-year earnings guidance, the company’s first quarterly results under new CEO Bill Brown.

Q2 swung to net income of $1.15B, or $2.07/share, from a loss of $6.84B, or $12.35/share, in the year-ago quarter, while adjusted total revenues rose 1.1% Y/Y to $6.02B; results are the first that does not include 3M’s (MMM) healthcare business, which was spun off as Solventum Corp. (SOLV) on April 1.

3M (MMM) said it now forecasts full-year adjusted EPS of $7.00-$7.30, above its previous guidance of $6.80-$7.30, while reaffirming guidance for adjusted total sales growth of negative 0.25% to positive 1.75% and adjusted organic sales growth of flat to positive 2%.

The company has enjoyed a boost from steady price increases across categories, which have helped offset inflation and slowing demand in its consumer and industrial businesses.

“We’re starting to see the benefits of restructuring coming through,” Brown told the Minneapolis Star-Tribune, referring to layoffs that began more than a year ago, and now he wants to accelerate the introduction of new products and return to sales growth.

Brown said he also wants to strengthen 3M’s (MMM) manufacturing by reducing complexity, cutting waste and better managing inventory.