Solventum (NYSE: SOLV) today posted first-quarter results that beat the overall consensus on Wall Street.
The St. Paul, Minnesota-based company spun from 3M reported profits of $237 million, or $1.37 per share, on sales of $1.6 billion for the three months ended March 31, 2024. Sales were up 0.19% from the same quarter last year, but profits fell from the $293 million reported last year.
Adjusted to exclude one-time items, earnings per share were $2.08, 34¢ ahead of The Street, where analysts were looking for sales of $2.02 billion.
“As a newly independent company, we have an incredible opportunity to create significant value for our shareholders over time as we position our company for long-term success,” CEO Bryan Hanson said in a news release. “With the recent spin-off, Solventum is better positioned to pursue tailored capital allocation plans and more targeted business strategies to accelerate growth and deliver value for our customers, investors and employees.”
Related: How Solventum plans to create value after spinning out of 3M
Solventum officially completed its spinoff from 3M on April 1. The company’s Form 10 and Q1 2024 financials report the historical financials. The Form 10-Q is prepared as a carve-out of 3M. The company said the basis of the Q1 earnings differs from what was reported in 3M’s historical consolidated results for the Health Care segment. Solventum will report its results as a standalone company starting in Q2 2024.
For fiscal 2024, Solventum reaffirmed its full-year guidance. It anticipates organic sales growth of -2% to 0% and an adjusted EPS of $6.10 to $6.40.
The company also expects additional considerations affecting business this fiscal year, including a waning benefit from pricing for the remainder of 2024 and a return to a normalized pricing environment. An SKU rationalization project is also expected to impact financials in the second half of 2024 and continue into 2025 and 2026. A 3M supply agreement markup, started on April 1, is expected to impact the company’s impact statement to begin largely in the second half of 2024.
Shares in SOLV were up 1% to $67.13 apiece in morning trading.
