3M Co (NYSE:MMM) surged over 5% on Tuesday after the post-it note maker unveiled expectation-beating earnings and forecast profit to improve over the coming year.
Fourth-quarter adjusted per-share earnings dropped by 2% to US$1.68, the manufacturer said on Tuesday, but were ahead of market expectations for US$1.66.
Revenue of US$6.01 billion in the meantime also outdid forecasts and was up by 0.1% year-on-year.
“Our fourth quarter capped a year of strong results as we returned to positive organic revenue growth in the full year,” chief executive William Brown commented.
Over the year, earnings per share sat at US$7.26, against 2023’s US$15.17 loss, as revenue on an adjusted basis climbed by 1.3% to US$23.63 billion.
Having taken the helm in May last year, Brown has overseen a turnaround of 3M, with efforts to reduce complexity and improve margins having been made most recently, he said on an earnings call.
Focus has also been placed on research and development, alongside investment in higher-growth areas such as electric vehicles, data centers and semiconductors, he signalled.
“Reinvigorating the innovation engine is critical to sustain this top-line momentum,” Brown added.
Profit was expected to improve over the coming year, with 3M guiding for adjusted earnings of US$7.60 to US$7.90 per share.
Shares surged by 5.3% to a three-year high of US$148.40 following the update.