Market Optimism Defies Tariff Fears as 3M Stock Soars
Despite the looming threat of big tariff hikes, the Dow Jones Industrial Average is off to a strong start, led by industrial giant 3M (MMM). The company’s fourth-quarter earnings report exceeded expectations, sending its stock soaring 3.7% in premarket trading on Tuesday.
Earnings Beat Expectations
3M reported earnings of $1.68 per share, down 17% from the previous year, but still above analyst estimates of $1.66 per share. Revenue declined 24% to $5.81 billion, but topped forecasts of $5.78 billion. For the full year, the company saw earnings of $7.30 per share with sales of $23.63 billion.
CEO Confident in 2025 Outlook
“We are carrying this momentum forward and are confident in our ability to deliver our 2025 guidance,” said Chief Executive William Brown in the earnings release. The company expects sales growth of 0.5%-1.5% and per-share earnings between $7.60-$7.90 in 2025.
Analysts Weigh In
Analysts predict 3M earnings of $7.78 per share in 2025 with sales growing 2% to $24.03 billion, according to FactSet. The company’s strong results have put its stock on track to break out above a traditional 141.34 buy point from a flat base pattern.
Stock Performance
Shares of 3M have been on a tear, jumping 7.5% last week and more than 9% so far in January. The stock holds an 84 Composite Rating out of 99, with an 89 Relative Strength Rating and an EPS Rating of 80.
Other Market News
Meanwhile, Netflix is in a flat base ahead of its fourth-quarter results on Tuesday. Construction stocks are also bracing for the potential impact of the president’s policies, which could both help and hurt the industry.
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