3M Stock Crashes Again: Buy, Sell, or Hold the Stock?
Investors in 3M (NYSE: MMM) hoped the industrial giant's restructuring efforts would show up in its numbers for the fourth quarter and outlook for 2024. However, 3M continues to remind investors about the many problems it is dogged with, particularly legal issues that have weighed heavily on the company's growth and prospects in recent years. That explains why 3M stock crashed by double digits on Tuesday after earnings.
To be fair, 3M still beat its earnings guidance in 2023 and exited the year with strong cash flows. Management now believes simplifying the organization structure, finalizing legal settlements, and completing strategic moves like spinning off its healthcare business should help 3M deliver a "successful" 2024.
3M's sales fell 0.8% year over year in Q4 and were down 4.5% in 2023. Organic sales fell 3% year over year in Q4. End markets played out as expected, with softness lingering in consumer retail and electronics markets. China also continues to be a weak spot for 3M.
Source Fool.com
