10:18 AM EDT, 07/26/2024 (MT Newswires) -- 3M ( MMM ) lifted the low end of its full-year earnings outlook on Friday after reporting second-quarter results above market estimates.

The industrial conglomerate now expects adjusted earnings of $7 to $7.30 per share for 2024, compared with a $6.80 bottom end of its prior guidance range. The consensus among analysts on Capital IQ is for $7.18. The company continues to forecast adjusted sales to be down 0.25% to up 1.75% for the year.

3M's ( MMM ) stock surged 16% in Friday trade.

"Given the strong operational execution in the first half of the year, we're raising the bottom end of our full-year adjusted earnings guidance," Chief Executive William Brown said during an earnings call, according to a Capital IQ transcript. "While significant macro uncertainty remains, our business segment and market trends are largely playing out as expected."

For the June quarter, adjusted EPS advanced to $1.93 from $1.39 the year before, surpassing the Street's view for $1.68. Adjusted operating margin expanded by 440 basis points to 21.6%, Chief Financial Officer Monish Patolawala said on the call. Operating expenses fell to $4.98 billion from $15.64 billion year-on-year.

"Our second-quarter year-on-year performance was driven by organic growth, productivity, strong spending discipline and restructuring savings which combined benefited operating margins by 310 basis points and earnings by $0.31 per share," said Patolawala, who is set to leave the company at the end of this month to join Archer-Daniels-Midland (ADM) in the same role.

Sales edged down 0.5% to $6.26 billion, but topped analysts' $5.83 billion estimate. Revenue in the safety and industrial segment ticked down to $2.76 billion from $2.77 billion, while transportation and electronics decreased to $2.14 billion from $2.19 billion. Consumer sales amounted to $1.26 billion versus $1.29 billion in the 2023 quarter, according to 3M ( MMM ).

Revenue in the Asia Pacific and Europe, the Middle East and Africa regions declined, while it gained in the Americas.

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