Why Shares in 3M Rose This Week
Shares in industrial giant 3M (NYSE: MMM) increased by almost 10% in the week to Friday morning, according to data provided by S&P Global Market Intelligence. The move comes down to a combination of a well-received presentation at the J.P. Morgan Industrials Conference on Wednesday and an update on the CEO succession on Tuesday.
Given that 3M's share price is down almost 48% since Mike Roman took over as CEO in July 2018 it's fair to say his tenure hasn't been a success. However, with former L3Harris Technologies chairman William Brown taking over on May 1, investors have a reason for optimism that a change in strategy could be imminent. That said, Roman will take over as executive chairman at that time, and 3M has waived the mandatory retirement age of 65 years for both men in their 60s.
The headline from the presentation is that Roman raised the company's first-quarter earnings-per-share guidance from between $2 and $2.15 to a new range of $2.05 to $2.20. However, the $0.05 only comes from "the interest on the Solventum debt raise," according to Roman. As a reminder, Solventum is the healthcare business 3M is set to spin off on April 1.
Source Fool.com
