3M Reports Strong Q3 Earnings, But Narrows Outlook

3M Co. (NYSE:MMM) shares surged more than 4% intra-day on Tuesday after the company reported third-quarter earnings and revenue that surpassed analyst expectations.

The company posted an EPS of $1.98, outperforming the Street estimate of $1.90. Revenue also came in strong at $6.1 billion, slightly ahead of the projected $6.06 billion. Additionally, 3M's adjusted operating margin improved to 23%, up from 21.6% year-over-year, highlighting the company’s focus on operational efficiency.

Despite the positive earnings, 3M reported a negative operating cash flow of $1.8 billion, which was larger than the expected $1.57 billion shortfall. However, adjusted free cash flow came in at $1.5 billion, demonstrating continued cash generation strength.

For the full year, 3M revised its adjusted EPS forecast from continuing operations to a range of $7.20 to $7.30, narrowing its previous outlook of $7 to $7.30. The consensus estimate was $7.30.