Key Stats for 3M Stock
- Price Change for $MMM stock: 8%
- Current Share Price: $165
- 52-Week High: $167
- $MMM Stock Price Target: $166
What Happened?
3M (MMM) stock jumped nearly 8% after it reported Q3 earnings that beat expectations and raised its full-year profit forecast for the second time this year. The maker of Post-it and Scotch tape is proving that CEO Bill Brown’s turnaround strategy is working.
3M earned $2.19 per share on an adjusted basis, crushing the analyst estimate of $2.07. Revenue came in at $6.32 billion versus expectations of $6.25 billion. Those are solid beats, but the guidance raise is what really got investors excited.
The company expects 2025 adjusted profit between $7.95 and $8.05 per share, up from the previous forecast of $7.75 to $8 per share.
Operating margin is projected to grow 1.8 to 2 percentage points for the year, an improvement from the earlier outlook of 1.5 to 2 percentage points.
Brown, who took over as CEO in 2024 when it was dealing with slowing sales and multiple lawsuits, has focused on shifting the product mix toward higher-margin items while tightening cost controls.
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What the Market Is Telling Us About 3M Stock
The market’s positive reaction to 3M stock shows investors believe the company’s transformation is real and sustainable.
3M launched 70 new products in Q3 and expects to hit 250 product launches by year-end, well above the initial target of 215.
Brown’s approach focuses on cross-selling high-margin products to existing customers, improving delivery times to avoid penalties, and reducing general and administrative costs.
Selling, general, and administrative expenses dropped 22.8% during the quarter. At the same time, research and development expenses rose 10.4%, indicating the company’s investment in innovation while reducing waste elsewhere.
Brown explained that MMM stock is benefiting from automation, which replaces visual inspection processes and streamlines design to reduce manufacturing waste.
Morgan Stanley analyst Chris Snyder noted that new management initiatives seem to be gaining traction.
Third-quarter organic sales grew 3.2% despite a challenging consumer market, demonstrating the company’s ability to grow even in less-than-ideal conditions.
3M also announced it’s selling its precision grinding and finishing business, part of the abrasives division, and took a $160 million pre-tax charge related to the deal. Brown said the company will continue to seek additional divestitures, indicating further portfolio optimization ahead.
MMM stock has climbed 30% year-to-date as investors recognize the progress Brown is making. The company was weighed down by litigation and operational challenges when he took over, but the latest results show momentum is building.
With improving margins, strong product innovation, and disciplined cost management, 3M is setting itself up for sustained growth.
The fact that this is the second guidance raise of the year indicates that management has visibility into the business and confidence in its trajectory.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
