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3M adjusted its outlook for the year, saying earnings and sales will come in lower than previously expected.
Chona Kasinger/Bloomberg
3M
had a ton of news to share beyond earnings Tuesday. Investors focused on the positives.
The company reported second-quarter earnings that beat expectations and said it was spinning off its multibillion-dollar healthcare business. Those updates outweighed a cut to
3M
’s
financial outlook.
3M (ticker: 3M) reported adjusted earnings per share of $2.48 per share in the second quarter, beating Wall Street’s forecast for $2.41, according to FactSet. Sales of $8.7 billion were down year-over-year but beat estimates for $8.57 billion.
The stock rose 4% to $139.80 in premarket trading Tuesday.
Separately, the Industrial, chemical, and consumer products company said it was creating a stand-alone healthcare business that will focus on dressings for wounds, healthcare IT, and other areas. 3M said it would retain a nearly 20% stake in the new company.
Selling the healthcare business simplifies the business model of 3M, a seller of everything from office supplies such as Post-its, Scotch tape to electronic connectors.
It wasn’t all good news though. The company dropped its earnings estimate for the year to a range between $10.30 and $10.80 per share from $10.75 and $11.25 earlier. Sales are also expected to come in lower at a range of between -0.5% and -2.5%. That is worse than management’s prior outlook of 1% to 4% growth.
In addition, the company said its Aearo Technologies business voluntarily filed for bankruptcy in a bid to…
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