3M (NYSE: MMM) stock was holding up firmly this year until its quarterly earnings report came out this week. Despite surpassing earnings estimates, shares of the industrial conglomerate crashed this week and were trading 10.4% lower through 10:30 a.m. ET Friday, according to data provided by S&P Global Market Intelligence. While its outlook for 2024 fell short of analysts' estimates, the primary concern is that 3M could revise its guidance later in the year given two major events coming up.
3M raised its 2023 adjusted earnings per share (EPS) guidance for the second time in the third quarter and hoped to earn up to $9.15 per share. It eventually reported an adjusted EPS of $9.24 per share for 2023, beating its guidance.
3M is coming off of what was its biggest year of restructuring ever, thanks to which its operating margin under generally accepted accounting principles (GAAP) shot up to 15.5% in the fourth quarter from 7.8% in the year-ago quarter. Even after adjusting for restructuring and other nonrecurring charges, 3M's operating margin rose to 20.9% in Q4 from 19.1% in the year-ago quarter.
Source Fool.com