Solventum Corporation (NYSE: SOLV), a healthcare solutions provider, reported a slight increase in first-quarter revenue and reaffirmed its full-year 2024 guidance.
The company, which recently completed a spin-off from 3M and began trading independently on April 1, 2024, announced that its sales rose 0.2% to $2.016 billion, with organic sales climbing 0.9%.
For the first quarter ended March 31, 2024, Solventum's adjusted earnings per share (EPS) reached $2.08, reflecting a solid performance following its transition to a standalone entity. The results were compared to the same quarter last year, where Solventum reported a net sales increase from $2.011 billion.
CEO Bryan Hanson expressed optimism about the company's future, stating, "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."
He attributed the quarter's results to the annualization of 2023 pricing actions and benefits from the timing of customer orders in the Purification and Filtration segment.
Despite the modest revenue growth, the company's stock experienced a slight decline of 0.63% following the earnings release, indicating a restrained investor reaction.
Looking ahead, Solventum reaffirms its full-year 2024 guidance, expecting organic sales growth between -2% and 0%, with adjusted EPS projected in the range of $6.10 to $6.40. This guidance aligns closely with the analyst consensus of $6.27 for the full year. The company also anticipates free cash flow of $700 million to $800 million.
Solventum's confidence in its full-year outlook is tempered by expectations of a waning benefit from pricing for the remainder of 2024 and a return to a normalized pricing environment.
The company also plans to prioritize debt paydown for the next 24 months and has decided not to pay a cash dividend or authorize share repurchases at this time.
The company's financial results and guidance are based on Q1 2024 3M carve-out financial information and expected results for the remainder of the year as a stand-alone company.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.