3M (MMM.US) shares fell more than 4.0% before the opening bell after the multinational conglomerate reported weak quarterly earnings and gloomy outlook for the upcoming months.
Earnings fell 7% YoY to $2.28 per share, while analysts expected $2.37 per share. Revenue dropped 5.8% to $8.1B and topped the consensus estimate of $8.06B.
For the 2023 financial year, the company expects adjusted earnings in the region of $8.50 to $9.00 per share, well below Refinitiv estimates of $10.20 per share, with adjusted sales falling between 2% and 6%.
"The slower-than-expected growth was due to rapid declines in consumer-facing markets -- a dynamic that accelerated in December -- along with significant slowing in China due to COVID-related disruptions. As demand weakened, we adjusted manufacturing output and controlled costs, which enabled us to improve inventory levels" said CEO Mike Roman.
Company expects that difficult macroeconomic conditions will persist in 2023 and expects to cut 2,500 manufacturing jobs
3M (MMM.US) stock price pulled back sharply last week as buyers failed to break above key resistance at $131.90, which coincides with 23.6% Fibonacci retracement of the downward wave launched in November 2021, long-term downward trendline and 200 SMA. Recent quarterly results provided more fuels for the bears. If current sentiment prevails, downward move may accelerate towards October 2022 lows around $107.55. Source: xStation5