Market News

3M Q4 Misses on Bottom Line; To Slash 2,500 Jobs

Shares of technology company 3M (NYSE:MMM) are trending lower today after its fourth-quarter bottom line came in lower than expectations. The company’s fourth-quarter revenue dropped 5.9% year-over-year to $8.1 billion, still outpacing estimates by $10 million.

EPS at $2.28, on the other hand, missed the cut by $0.08. The weakness in growth was attributable to a decline in consumer-facing markets and a slowdown in China. The company also expects macroeconomic challenges to continue this year and is slashing its global manufacturing roles by about 2,500. The job cuts come as 3M is exiting per- and polyfluoroalkyl substance production (forever chemicals).

Looking ahead, for 2023, 3M now expects sales to decline in the range of 6% and 2% owing to a decline in disposable respirators, exit from Russia, foreign currency gyrations, and divestiture. Adjusted EPS is expected to hover between $8.50 and $9.

While shares of the company have declined 29% over the past year, overall, Wall Street has a consensus price target of $120.13 on Verizon, implying the stock is fairly priced at the current level, as indicated by the graphic above.

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