• 3M Q2 Non-GAAP EPS of $2.48 beats by $0.04.
• Revenue of $8.7B (-2.8% Y/Y) in-line.
• Sales of $8.7 billion, down 3 percent year-on-year, which included a negative 4 percentage point impact from foreign currency translation due to strength of U.S. dollar.
• 3M updated its full-year sales and earnings expectations to reflect the impact of the strong U.S. dollar along with the current uncertain macroeconomic environment.
• Total sales growth: -2.5 to -0.5 percent vs. 1 to 4 percent prior vs. $0.30% consensus.
• Organic sales growth: 1.5 to 3.5 percent vs. 2 to 5 percent prior.
• Foreign currency translation: -4 percent vs. -1 percent prior
• GAAP earnings per share: $7.32 to $7.82 vs. $9.89 to 10.39 prior
• Adjusted earnings per share: $10.30 to $10.80 vs. $10.75 to $11.25 prior vs. $10.50 consensus.
• The company warned of a $300M hit to revenues and a $0.30/share drag on earnings in Q2, as China's COVID lockdowns hurt demand and exacerbate supply chain challenges.
• Operating cash flow of $6.6 to $7.2 billion contributing to 90% to 100% adjusted free cash flow conversion