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Based in San Francisco, California, Solventum Corporation (SOLV) is a global leader in sustainable technology solutions. It is renowned for its innovative products and services in renewable energy, water purification, and waste management. With a market cap of $9.94 billion, Solventum is recognized for its cutting-edge research, technological excellence, and commitment to delivering eco-friendly solutions that promote environmental sustainability. Solventum is scheduled to announce its fiscal Q2 earnings results after the market closes on Thursday, Aug. 8.
Ahead of the event, analysts expect SOLV to report a profit of $1.46 per share. Its adjusted earnings of $2.08 per share for the last quarter surpassed the consensus estimate by 24.6%. Solventum's Q1 performance was driven by 2023 pricing actions and robust purification and Filtering sales, partially offset by lower volumes and higher operating expenses.
For fiscal 2024, analysts expect SOLV to report EPS of $6.25.
SOLV stock is down 6.9% over the past three months, underperforming the broader S&P 500 Index's ($SPX) 7% gains and the Health Care Select Sector SPDR Fund’s (XLV) 6.5% returns over the same time frame.
On Jul. 23, the SOLV rose more than 4% in pre-market trading after Bloomberg reported that activist investor Nelson Peltz's Trian Fund Management had acquired a substantial stake in the company.
Solventum's Q1 2024 financials reflect a carve-out from 3M, but starting Q2 2024, results will be reported as a stand-alone company; Q1 organic sales growth benefited from 2023 pricing actions despite lower volumes, and operating income rose due to higher gross profit, offset by increased public company costs.
The company reported Q1 earnings on May 9. SOLV has reaffirmed its full-year 2024 guidance, projecting organic revenue growth between -2% and 0% and anticipating free cash flow from $700 million to $800 million. The stock declined 2.4% on the day it released earnings.
The consensus opinion on SOLV stock is cautious, with an overall “Hold” rating. Four of five analysts covering the stock advise a “Hold” rating, and one suggests a “Strong Sell.” SOLV's average analyst price target is $58, indicating a marginal potential upside from the current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
