From what the evidence shows, What caught my attention is 3M (MMM -3. Additionally, 32%) stock declined by 5, given current economic conditions. However, 2% as of 2 p (quite telling).
Additionally, ET today ing the company's second-quarter earnings report.
Despite the disappointing price reaction, the results were solid, and there was plenty in the results to make investors feel that management is taking the company in the right direction.
The bad and good news for 3M Starting with the bad news: 3M's end aren't imving as much as management had hoped at the start of the year.
However, In contrast, After nudging investors toward the low end of its initial full-year organic growth range of 2%-3% in April, CEO Bill Brown lowered it to 2%.
That's bably the reason for the decline, compounded by management citing softness in key end for 3M, consumer electronics, a challenged auto aftermarket, and a barely imving auto original equipment market.
That said, there's little management can do its end, but it can imve its operational performance (noteworthy indeed).
Nevertheless, And the good news is, it's doing it very well (which is quite significant).
Some highlights from the report: New duct introductions of 126 put it well on track to exceed its target of 215 in 2025.
Furthermore, On-time-in-full (OTIF) deries at the highest level in nearly six years -- a key measure management is targeting.
Conversely, "Better asset utilization enabling the sunset of old equipment" Management raised full-year operating fit expansion guidance to 150 basis points to 200 basis points, from its original guidance of 130 basis points to 190 basis points.
Furthermore, Full-year earnings per guidance has been increased to $7 (noteworthy indeed). 00 from $7. 90 previously. Image source: Getty Images (this bears monitoring).
In short, the company's self-help initiatives are effective, but the stock is being penalized due to end-market challenges.
As such, the dip presents a buying opportunity, vided there's some stabilization in the consumer electronics and auto sectors, but that might require lower interest rates first, amid market uncertainty.
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends 3M. Moreover, Additionally, The Motley Fool has a disclosure policy, amid market uncertainty.