3M Co. (NYSE:MMM) is a Minnesota-based diversified technology services company that operates in the United States and around the world. Shares of 3M were up 7.5% in pre-market trading the morning of Friday, July 26, 2024. The stock has already climbed 12% in the year-to-date period as of close on Thursday, July 25, 2024.
What is behind 3M’s pre-market momentum?
The company released its second quarter (Q2) fiscal 2024 earnings on Friday, July 26. 3M reported total sales of $6.3 billion. That was down 0.5% compared to the previous year. Meanwhile, GAAP earnings per share (EPS) from continuing operations surged 117% year-over-year to $2.17. Adjusted EPS from continuing operations increased 39% to $1.93. Meanwhile, adjusted free cash flow reached $1.2 billion.
Looking ahead, 3M is projecting adjusted total sales growth between negative 0.25% to 1.75%, which was unchanged from its prior 2024 forecast. It continues to expect adjusted organic sales growth from flat to 2% growth for the full year. However, it did bump up its adjusted EPS projection to between $7.00 to $7.30 compared to its previous range of $6.80 to $7.30.
Shares of 3M are currently trading in favourable value territory compared to its industry peers. Moreover, the company is still on track for strong earnings growth going forward. 3M offers a quarterly dividend of $0.70 per share. That represents a modest 2.45% yield.
