3M Company (NYSE:MMM) shares plummeted over 8% in the early session today after the diversified technology solutions provider announced a mixed set of fourth-quarter numbers. Revenue of $7.69 billion came in line with estimates. EPS of $2.42, on the other hand, outpaced expectations by $0.11.
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During the quarter, organic sales declined by 1.9% year-over-year. However, the company’s adjusted free cash flow improved by 18% to $2 billion. For the full year, 3M’s GAAP EPS dropped to -$12.63 from $10.18 in 2022. This decline was due to the impact of CAE and PWS settlements in the U.S.
Now, 3M is focusing on driving operational execution, improving margins, and simplifying its organizational structure. Additionally, the company’s healthcare spin-off remains on track for the first half of this year. Looking ahead to Fiscal Year 2024, 3M expects adjusted total sales growth to be in the range of 0.25% to 2.25%. EPS for the year is anticipated to be between $9.35 and $9.75. Further, adjusted operating cash flow is seen landing between $6.5 billion and $7.1 billion.
What is the Future Prediction for 3M Stock?
Overall, the Street has a Hold consensus rating on 3M, and the average MMM price target of $108.33 implies the stock may be fairly priced at current levels. That’s after a nearly 12% slide in 3M’s share price over the past year.
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