Solventum (NYSE:SOLV) shares rose today on second-quarter results that came in ahead of the consensus forecast on Wall Street.
Shares of SOLV ticked up 4% to $61 apiece as the market opened today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — rose slightly.
In its first quarterly earnings report as an independent company, the St. Paul, Minnesota–based 3M healthcare spinoff reported profits of $89 million. That equals 51¢ per share on sales of $2.08 billion for the three months ended June 30, 2024.
Solventum recorded a 72.3% bottom-line slide on a sales increase of 0.2%.
Adjusted to exclude one-time items, earnings per share came in at $1.56. That landed 6¢ ahead of expectations on Wall Street. Sales narrowly beat estimates as well, with experts projecting $2.05 billion in revenue.
Solventum said its reported and organic sales growth in the quarter reflected the expected normalizing of pricing. While volumes grew slightly, the company says this included a benefit from a backorder improvement. MedSurg and Health Information Systems led the growth from a segment standpoint. However, performance in Dental Solutions and Purification and Filtration partially offset results.
The company raised its guidance for both sales and adjusted EPS in 2024. It now expects sales growth between 0% and 1%. The company previously suggested a sales decline of as much as 2%, with 0% growth set as the high end of the range. Solventum now projects between $6.30 and $6.50 for adjusted EPS, previously forecasting $6.10 to $6.40.
“As we continue to execute a complex transformation, we’re encouraged by our first financial results as an independent company and early ability to maintain business continuity,” said Bryan Hanson, CEO, Solventum. “We are starting from a solid foundation and remain focused on addressing historical underperformance and spin-related topics to unlock significant value creation over time.”
