3M Company (MMM) Options

KEY REVERSAL WEEK ALERT! Bought 3 March 150 calls!

3M 3Q24 CC transcript:

https://finance.yahoo.com/news/3m-mmm-q3-2024-earnings-173011654.html

3M reports 3Q24 results—raises low-end of 2024 EPS guidance:

https://d1io3yog0oux5.cloudfront.net/_f3964958e9215b6f2bea167334f734c9/3m/db/3222/30893/earnings_release/Q3+2024+-+Earnings+Press+Release.pdf

3Q24 non-GAAP EPS—which excludes PFAS litigation expenses and unrealized gain/loss on 3M’s 19.9% equity stake in SOLV—was $1.98. (3Q24 non-GAAP EPS was actually lower than 3Q24 GAAP EPS of $2.48 because the non-GAAP figure excludes a substantial unrealized gain on 3M’s SOLV holding.)

3Q24 sales from continuing operations (which excludes revenue from PFAS products that are being phased out by the end of 2025) was $6.07B (+1.5% YoY).

New 2024 non-GAAP EPS guidance is $7.20-7.30, up at the low end from the prior range of $7.00-7.30.

New 2024 organic-sales-growth guidance is +1%, narrowed from the prior range of 0-2%. (Organic sales growth excludes the effect of acquisitions, divestitures, and exchange rates.)


CC slides:
https://d1io3yog0oux5.cloudfront.net/_f3964958e9215b6f2bea167334f734c9/3m/db/3222/30893/presentation/Q3+2024+-+Earnings+Presentation.pdf

3Q24 financial statements:
https://d1io3yog0oux5.cloudfront.net/_f3964958e9215b6f2bea167334f734c9/3m/db/3222/30893/financial_statement/Q3+2024+-+Supplemental+Financial+Schedules.pdf

MMM 10Q due Oct 22

MMM new 52 weeknhigh

Bought 3 Nov 140 calls here today at 2.95, earnings out 10/22

MMM new 52/week high

MMM new 52 week high

Bought 4 Nov 140 calls at 2.65 here today!

3M hires new CFO, Anurag Maheshwari, currently CFO of OTIS:

https://finance.yahoo.com/news/3m-appoints-chief-financial-officer-103000707.html

3M’s outgoing CFO, Monish Patolawala, left to become CFO of ADM after being passed over for the CEO job at 3M.

More on the same story—(from Bloomberg):

https://finance.yahoo.com/news/3m-boosts-profit-forecast-ceo-105728844.html

Correction—3M's updated 2024 non-GAAP EPS guidance was an increase of $0.20 at the low end from $6.80 to $7.00. The high end of the guidance range, $7.30, is unchanged.

Neb, I'm seeing it different man, I think we see historic run up in stocks till EOY, MMM is just a warm up of how stocks will rip till year end esp after the rate cut
I am loaded with small cap calls and many more calls on bb stocks and indexes

Who da thought? 3M up 23% in one day? Simply Amazing!! 200 day MA at 117 is pullback support now, man after I 3x it on those calls I was pricing the Aug 120 calls at 3.00, tried to buy 2.50, no fill now 9.00! This is just a warm up of how stocks will rip till year end esp after the rate cut

3M 2Q24 CC transcript:

https://finance.yahoo.com/news/3m-mmm-q2-2024-earnings-201516717.html

best day ever likely means a little bit more follow through then it goes back to flatlining or trending lower

recession is coming

FED is so screwed

inflation is a problem and they want to cut rates???? they are morons

holiday season is one of the biggest reasons for inflation and its right around the corner plus an election and probably a black swan event

I took a trip to the ATM, as well. I’m happy with my exit point. Need a dip to get back in.

Wow! Best day ever for MMM!!! Too bad I sold way too early! Still a 3 bagger though!

I'm still holding. But not happy.

"3M Jumps Most in 36 Years as New CEO Boosts Profit Forecast"

(Bloomberg) -- 3M Co. soared the most in more than 36 years after raising its full-year profit forecast as its new chief executive officer vowed to reinvigorate the iconic manufacturer’s innovation engine.

The shares jumped as much as 16% as of 9:36 a.m. in New York, the most since 1987. The gains came after the maker of Post-it notes and industrial adhesives said adjusted earnings this year would be between $7.00 to $7.30 per share as it reported second-quarter results. That boosted the midpoint of 3M’s forecast to $7.15, up a dime from its previous outlook.

The results are the first under CEO Bill Brown, who succeeded Mike Roman on May 1. Brown inherited a much smaller company following the spinoff of 3M’s huge health-care products division unit amid massive legal liabilities.

Brown kicked off his first earnings call by stressing the need to accelerate 3M’s sales growth. To get there, he wants to increase the pace of new product development."

https://finance.yahoo.com/news/3m-boosts-profit-forecast-ceo-105728844.html

My buddy got fired from 3M. They’re ducking ruthless!

Part of the reason for 3M's breakout today is the first quarterly CC with the new CEO, Bill Brown (#msg-174020774). On the CC, Brown said all the right things about about improving R&D productivity and capital management.

3M—(+20%)—reports 2Q24 results—raises 2024 EPS guidance:

https://investors.3m.com/news-events/press-releases/detail/1854/3m-delivers-strong-second-quarter-results-company-updates

Today is shaping up to be the largest single-day % gain for 3M shares since the 1980s!

3M spun off its healthcare segment into the new company, Solventum (Nasdaq: SOLV) on 4/1/24, so 3M’s 2Q24 results and 2024 guidance no longer include that business segment.

New non-GAAP EPS guidance is $7.00-7.30, up $0.50 from the prior range of $6.80-7.30. (Non-GAAP EPS excludes the cost of the announced earplug and PFAS settlements and related legal expenses.)

3M reiterated guidance for 2024 sales growth of -0.25% to +1.75% and for organic sales growth of 0-2.0%. (Organic sales growth excludes the effect of acquisitions, divestitures, and exchange rates.)


CC slides:
https://d1io3yog0oux5.cloudfront.net/_142360f796ba67379326101abd746104/3m/db/3222/30879/presentation/Q2+2024+Earnings+Presentation.pdf
‘
2Q24 financial statements:
https://d1io3yog0oux5.cloudfront.net/_142360f796ba67379326101abd746104/3m/db/3222/30879/financial_statement/Q2+2024+Supplemental+Financial+Schedules.pdf

Thanks! I sold today and made 3x, sold too early though, I can't believe how strong this is today!

Congrats ! 👏

Bought 3 Oct 110 calls here today at 3.25

Firefighters sue 3M/DD/HON re PFAS-laden gear:

https://finance.yahoo.com/news/connecticut-firefighters-sue-dupont-3m-214455035.html

3M +4% to 12m high because they cut the dividend by 54%*. Part of the reason for the cut was the spinoff of SOLV, but most of the reason for the cut was to improve the balance sheet and be better able to afford the PFAS and earplug legal liabilities that have been settled.

*The new annualized payout is $2.80, down from $6.04. At the current share price ($104.86), the new annualized payout is a yield of 2.7%.

Barron’s—>3M has turned_the_corner_and_is_now_a strong buy:

https://www.barrons.com/articles/buy-3m-stock-price-pick-4bc973b4

FWIW

3M 1Q24 CC transcript:

https://finance.yahoo.com/news/q1-2024-3m-co-earnings-045004671.html

3M reports 1Q24 results—issues 2024 ex-SOLV-spin guidance:

https://d1io3yog0oux5.cloudfront.net/_827c8a8b5aa9802496746200b47d1a06/3m/db/3222/30862/earnings_release/Q1+2024+Press+Release.pdf

3M spun off its healthcare segment into the new company, Solventum (Nasdaq: SOLV) on 4/1/23, so 3M’s 1Q24 results include that business segment. However, 3M’s new guidance for full-year 2024 results excludes the spun-off business and is on an apples-to-apples basis.

1Q24 sales were $8.0B, flat YoY. 1Q24 organic sales (excluding FX, acquisitions, and divestitures) were -1% YoY.

1Q24 non-GAAP EPS—which excludes the cost of the announced earplug and PFAS settlements and related legal expenses—was $2.39, up from $1.97 in 1Q23.

3M’s new ex-SOLV-spin 2024 guidance is as follows:

Non-GAAP EPS of $6.80-7.30. (The prior 2024 guidance including SOLV was $9.35-9.75; actual 2023 non-GAAP EPS was $9.24.)

Sales growth of -0.25% to +1.75%]/b].

Organic sales growth of 0-2.0%.


CC slides:
https://d1io3yog0oux5.cloudfront.net/_827c8a8b5aa9802496746200b47d1a06/3m/db/3222/30862/presentation/Q1+2024+Earnings+Presentation.pdf

Financial statements: https://d1io3yog0oux5.cloudfront.net/_827c8a8b5aa9802496746200b47d1a06/3m/db/3222/30862/financial_statement/Q1+2024+Supplemental+Financial+Schedules.pdf

Bought 5 July 100 calls here today at 1.75, earnings out in the morning!

Great info
Next day settlement begins 5/28 per SEC mandate

Very nice!

iHub has a board for the SOLV spinoff:

https://investorshub.advfn.com/Solventum-Corp-SOLV-42765

3M Company (MMM) recently completed the previously announced spin-off of its healthcare business into a separate public company. The spun-off entity, which is renamed Solventum Corporation, is listed on the NYSE under the ticker SOLV.

https://www.zacks.com/stock/news/2249069/3m-mmm-completes-divestiture-of-its-healthcare-business

MMM’s shares increased 6% yesterday to eventually close the trading session at $94.02.

MMM shareholders received one share of Solventum stock for every four shares of 3M stock held on the record date for the distribution, Mar 18, 2024. The distribution is proposed to be tax-free to MMM’s shareholders. It’s worth noting that 19.9% of outstanding shares of Solventum stock were retained by 3M and will be monetized within five years after completion of the spin-off.

The spin-off of 3M and its healthcare unit will facilitate each entity to flourish through better operational focus, capital allocation policies and financial flexibility. Solventum will serve a global addressable market worth about $93 billion, which is expected to grow in the range of 4-6% through 2026. The new entity will operate through four operating segments, which are Medical Surgical, Dental Solutions, Health Information Systems and Purification & Filtration.

MMM new 52 hi

I am optimistic about where we are headed from here? Am I alone with this sentiment?

ha roman after 26M in pocket becoming chairman of 3M board, obviously smelling rotten fish - after converting this from an innovative to xnovative company - what next

3M announces new CEO effective 5/1/24:

https://finance.yahoo.com/news/3m-announces-leadership-appointments-103000708.html 3M today announced that William M. "Bill" Brown is appointed chief executive officer, effective May 1, 2024. He succeeds Michael Roman, who is appointed to the role of Executive Chairman of the 3M Board of Directors, also effective May 1, 2024.

…Brown, 61, is the former Chairman of the Board and Chief Executive Officer of L3Harris Technologies, a global innovator in aerospace and defense technology solutions, where he served as chief executive officer and chairman, and then executive chair from June 2019 to June 2022. Brown previously served as chairman, president, and chief executive officer of Harris Corporation prior to its merger with L3 Technologies in 2019. He joined Harris Corporation in November 2011 as president and chief executive officer. Prior to Harris Corporation, Brown spent 14 years at United Technologies Corporation (UTC) serving in a variety of leadership roles.

Roman will continue to chair 3M's Board of Directors and provide insights from his more than 35 years with 3M to the company's strategic direction as executive chairman of the board. He has served as 3M's CEO since July 2018. Roman might not have been a bad CEO, but bad things happened to the company on his watch, so he gets the blame. The stock is +5% in PM trading.

Details of 3M’s SOLV spinoff finalized:

https://finance.yahoo.com/news/3m-board-directors-approves-spin-165500127.html

3M shareholders of record on 3/18/24 will receive 1 share of SOLV for every 4 shares of 3M. The SOLV shares will be distributed before the market open on 4/1/24.

This is a tax-exempt distribution for US residents.

Further details of 3M/SOLV capitalization:

SOLV will sell $8.4B of new debt, keeping $600M of the proceeds and paying $7.7B as a one-time (tax-free) dividend to 3M. (~$100M of the debt proceeds will go to underwriting fees.)

After the debt issuance and one-time payment to 3M, SOLV will have a debt/EBITDA ratio of ~3.5.

3M’s Solventum spin slated for 4/1/24—Nasdaq symbol=‘SOLV’—Investor Day 3/19/24:

https://finance.yahoo.com/news/3m-announces-filing-form-10-150000365.html

See #msg-173870424, #msg-173870432, and #msg-173870470 for related info.

Are market conditions such that 3M views the spinoff as a good way to pay down debt, or obtain funds for further innovation in the medical device sector or pharmaceutical/biotech sector? Funds for M/A with a target in mind? The spinoff will include a large one-time cash transfer from Solventum to the post-spin 3M. 3M will use this cash to pay down debt and/or to help fund the earplug and PFAS legal settlements.

The post-spin 3M will almost certainly refrain from material M&A for a few years; it will instead focus on re-igniting organic growth and paying the legal settlements mentioned above.

On the other hand, Solventum could be a takeover target for a company such as DHR or TMO.

3M will retain a 19.9% stake in Solventum following the spinoff. 3M plans to sell these shares gradually over a 5-year period.

These are the five focal areas for 3M’s healthcare business that will become part of Solventum; they comprise about 25% of 3M’s current company-wide sales:

https://engage.3m.com/purification

https://www.3m.com/3M/en_US/health-information-systems-us/

https://www.3m.com/3M/en_US/medical-us/ (surgical supplies and wound care)

https://www.3m.com/3M/en_US/medical-device-components-us/ (components for other companies’ medical devices)

https://www.3m.com/3M/en_US/oral-care-us/ (dentistry and othodontics)

What do you see as the main focus of that 3M healthcare unit? Consumer goods like Kenvue? Will 3M retain a substantial equity position like JNJ did with Kenvue? Are market conditions such that 3M views the spinoff as a good way to pay down debt, or obtain funds for further innovation in the medical device sector or pharmaceutical/biotech sector? Funds for M/A with a target in mind?

As noted, the point was to keep the streak alive.

This year, however, the streak will presumably be broken when 3M spins off its healthcare business, Solventum.

Wow, that's a puny increase. But thanks