3M Co MMM shares are trading higher Tuesday after the company reported better-than-expected financial results and announced plans to spin-off its health care business.
3M said second-quarter revenue declined 3% year-over-year to $8.7 billion, which beat the estimate of $8.58 billion, according to data from Benzinga Pro. The company reported quarterly earnings of $2.48 per share, which beat the estimate of $2.45 per share.
Operating cash flow was down 40% year-over-year to $1.1 billion.
"Looking ahead, we updated our adjusted full-year expectations largely due to the strength of the U.S. dollar and uncertain macroeconomic environment," said Mike Roman, chairman and CEO of 3M.
3M cut its full-year revenue growth outlook from up 1% to 4% to down 0.5% to 2.5%. The company also cut full-year adjusted earnings from a range of $10.75 to $11.25 per share to a range of $10.30 to $10.80 per share versus the estimate of $10.60 per share.
Related Link: 3M: Q2 Earnings Insights
3M also announced plans to spin-off its health care business. The business is currently expected to be spun off with net leverage of approximately 3 to 3.5 times EBITDA. 3M will retain a 19.9% stake in the company.
MMM Price Action: 3M has traded between $181.78 and $125.60 over a 52-week period.
The stock was up 4.76% at $140.50 at press time.
Photo: StockSnap from Pixabay.
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