3M (NYSE: MMM) Stock Rises on Earnings Beat and Amazon Data Center Deal
Key points
- 3M (NYSE: MMM) shares gained after the company exceeded third-quarter profit estimates and raised its full-year outlook.
- Adjusted earnings reached $2.50 per share, compared with analysts’ estimate of approximately $2.38.
- An expanded agreement to supply Amazon with data-center products further supported investor optimism.
3M (NYSE: MMM) shares closed at $171.37 on October 20, up approximately 5.8%. The rally followed stronger-than-expected earnings, higher guidance and an expanded commercial agreement to supply Amazon with optical-connectivity and other data-center products.
The company reported third-quarter adjusted earnings of $2.50 per share, up 12% year over year. GAAP sales increased 1% to approximately $6.58 billion, while adjusted organic sales grew 3.3%. The adjusted operating margin improved by 110 basis points to 26.2%.
3M raised its full-year adjusted earnings forecast to $9.10–$9.15 per share, from $8.80–$8.95. It continues to expect adjusted total sales growth above 4.5% and adjusted organic sales growth above 3.5%.
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