Shares of diversified services provider 3M Company (NYSE:MMM) are marginally lower today after it announced better-than-expected first-quarter numbers alongside another headcount trim this year.
Revenue declined 9.7% year-over-year to $7.7 billion but came in ahead of expectations by $190 million. EPS at $1.97 too outperformed estimates by $0.29. The decline in sales was attributable to the impact of divestitures, and foreign currency headwinds coupled with lower organic sales.
Looking ahead, for the year 2023, 3M expects sales to decline in the range of -6% to -2%. EPS is seen landing between $8.50 and $9. The company is focused on improving margins and cash flow and is undertaking restructuring actions to optimize costs.
3M is shedding 6,000 jobs worldwide. The move is expected to impact all of its functions, businesses as well as geographies and comes on top of earlier 2,500 job cuts announced in January. 3M anticipates $700 million to $900 million in annual pre-tax savings as a result of the actions.
Overall, the Street has a $110.36 consensus price target on 3M, pointing to a 5% potential upside in the stock. That’s after a nearly 30% slide in the share price over the past year.
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