**3M Boosts FY24 Profit Outlook Following Strong Q3 Performance**

Shares of 3M Company (NYSE: MMM) surged after the company revealed robust third-quarter results that surpassed Wall Street expectations in both adjusted earnings per share (EPS) and sales, prompting a revision of its fiscal year 2024 profit outlook.

For the third quarter, 3M reported net sales of $6.294 billion, marking a modest 0.4% increase compared to the same period last year. Adjusted net sales saw a 1.5% rise to $6.068 billion, just above the consensus estimate of $6.057 billion. The company achieved an adjusted EPS of $1.98, up an impressive 18% year-over-year, and exceeding the anticipated $1.90.

The quarter's adjusted organic sales growth stood at 1.0%, despite a negative impact of approximately 1.0 percentage points from portfolio and geographic prioritization. Additionally, 3M's adjusted operating margin expanded by 1.4 percentage points to reach 23.0%, driven by factors such as organic growth, increased productivity, and strategic restructuring efforts.

However, the company's performance varied across different segments. The Safety & Industrial segment reported a 0.9% growth in adjusted organic sales but saw its adjusted operating margin decline to 24.3% from 25.7% the previous year. The Consumer segment experienced a 0.7% decline in organic sales.

A significant factor affecting the quarter's financials was the operating cash flow, which stood at $(1.8) billion. This figure was influenced by $3.6 billion in net after-tax payments associated with significant litigation costs, primarily involving Public Water Systems and Combat Arms Earplugs. Despite these expenses, 3M managed to generate $1.5 billion in adjusted free cash flow during the quarter and returned $1.1 billion to shareholders through dividends and share repurchases.

Looking ahead, 3M revised its fiscal year 2024 guidance, now projecting an adjusted EPS range of $7.20 to $7.30, up from the previous range of $7.00 to $7.30. This is in line with the consensus of $7.26. The company also adjusted its total sales growth guidance to approximately 1%, compared to the previously anticipated range of (0.25%) to 1.75%, and expects organic sales growth of around 1%.

As of Tuesday's premarket trading, 3M shares had risen 3.83%, reaching $140.00.