3M, the St. Paul, Minnesota company behind Scotch tape and Post-it notes, reported Tuesday that adjusted third-quarter earnings came in at 2.50 per share, topping the 2.38 average analyst estimate. Adjusted operating margin was 26.2%.
For the full year, management lifted adjusted EPS guidance to 9.10 to 9.15 from a prior range that topped out at 8.95, above the 8.94 analyst average compiled by Bloomberg. It is the second consecutive quarter the company has raised its outlook.
Leadership framed the upgrade as aligned with CEO Bill Brown's push to run leaner and launch new products faster. One focus is data centers, where 3M has built a fiber optic system intended to improve speed, reliability and scalability.
Late Monday, 3M announced an expanded relationship with an Amazon.com Inc. unit that allows the company to purchase up to 3.16 million 3M shares over seven years. Per the deal, 85% of the warrants will vest according to Amazon's spending on products related to optical connectivity and the broader data center category. 3M is also piloting its optical film technology with Swiss panel maker Voltiris SA for solar applications.
When company updates can reshape investor outlooks, stay informed with our free Market Briefs for clarity.
The company continues to face potential liabilities tied to past PFAS manufacturing. Last month, in personal-injury cases over alleged PFAS contamination, a court-appointed special master recommended dismissing claims by about 13,000 plaintiffs.
In New York trading at 9:32 a.m. Tuesday, 3M's stock was higher by under 1%. Through Monday's close, the stock had gained 1.2% this year, trailing the S&P 500's 12% rise. The bottom line: stronger profits and higher guidance help the story, while Amazon-linked warrants and PFAS exposure keep risk-reward a moving target for your portfolio.
Big corporate developments are part of the market story, sign up for the free Market Briefs newsletter today.
