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Investing.com -- Solventum Corporation (NYSE:SOLV) reported second-quarter adjusted earnings that narrowly beat Wall Street expectations, while raising its full-year outlook above analyst estimates, sending shares up 3.7% following the announcement.
The healthcare products company posted adjusted earnings per share of $1.69 for the second quarter of fiscal 2025, slightly above the analyst estimate of $1.68. Revenue came in at $2.16 billion, representing a 3.9% increase from $2.08 billion in the same quarter last year. Organic sales growth was 2.8% for the quarter.
The company raised its full-year 2025 guidance, now expecting adjusted earnings per share between $5.80 and $5.95, above the analyst consensus of $5.62. Solventum also increased its organic sales growth forecast to between 2.0% and 3.0%, up from its previous range of 1.5% to 2.5%.
"Our solid second quarter fiscal year 2025 results mark five consecutive quarters of positive sales volume growth since implementing our transformation strategy," said Bryan Hanson, chief executive officer of Solventum. "Given the continued and underlying momentum in our business and markets, we have raised our full year 2025 guidance at the top and bottom line reflecting confidence in our strategy and execution."
The company’s MedSurg segment led growth with a 4.8% sales increase to $1.22 billion, while the Infection Prevention and Surgical Solutions segment grew 6.9% to $750 million. The Advanced Wound Care segment saw more modest growth of 1.7%.
Operating cash flow for the quarter was $169 million, with free cash flow of $59 million. The company maintained its full-year free cash flow guidance of $450 million to $550 million.
Solventum noted that its guidance includes the Purification & Filtration segment, which saw 5.4% sales growth in the quarter. The company previously announced amended terms for the sale of this segment, under which it will retain ownership of the Drinking Water Filtration business.
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