3M Co (NYSE:MMM) raised its full-year profit and margin forecast after posting stronger-than-expected third-quarter results, driven by improved demand across its industrial, consumer and healthcare segments.
The diversified manufacturer reported adjusted earnings per share of $2.19, topping analysts’ estimates of $2.07 and rising 10% from a year earlier.
Revenue came in at $6.3 billion, up 4.1% on an adjusted basis and above Wall Street expectations of $6.25 billion.
The company now expects full-year adjusted EPS between $7.95 and $8.05, up from its prior range of $7.75 to $8, and above consensus estimates of $7.93. Adjusted sales growth is forecast at more than 2.5%, with organic growth expected to exceed 2%.
3M said adjusted operating margin expanded 170 basis points year-over-year to 24.7%, supported by cost discipline and productivity gains. Free cash flow reached $1.3 billion, while shareholder returns totaled $900 million in dividends and buybacks.
All business segments posted growth in the quarter, led by a 3.5% increase in organic sales from the Healthcare & Transportation unit. The Industrial & Safety division grew 2.6%, and Consumer & Electronics rose 3.2%, each posting margin expansion of more than 100 basis points.
“Our teams’ focus on reinvigorating top-line growth and operational performance drove another strong quarter,” said CEO Mike Roman. “The 3M Excellence Model helped accelerate organic sales, increase margins, and deliver double-digit EPS growth.”
Shares of 3M rose 4.5% in morning trading.