What Happened?
Shares of industrial conglomerate 3M (NYSE:MMM) jumped 6.1% in the pre-market session after the company reported fourth-quarter results, which exceeded analysts' revenue and EPS expectations. On the other hand, its full-year EPS guidance fell slightly short of Wall Street's estimates. Zooming out, we think this was a decent quarter featuring some areas of strength but also some blemishes.
After the initial pop the shares cooled down to $147.22, up 4.4% from previous close.
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What The Market Is Telling Us
3M’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 6 months ago when the stock gained 17.6% on the news that the company reported strong second-quarter earnings results. 3M beat analysts' revenue, operating profit, and EPS expectations. That the company raised full year EPS guidance is also a great sign. Overall, this was a really good quarter that should please shareholders.
3M is up 13.5% since the beginning of the year, and at $147.22 per share, has set a new 52-week high. Investors who bought $1,000 worth of 3M’s shares 5 years ago would now be looking at an investment worth $820.67.
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