Solventum Q3 sales fall slightly less than expected; raises FY adj EPS outlook
Overview
US healthcare products provider's Q3 sales fell 7% yr/yr but slightly beat analyst expectations
Adjusted EPS for Q3 beat analyst expectations
Organic sales fell 2.8%, reflecting reversal of advance orders ahead of ERP cutover
Outlook
Solventum expects full-year organic sales growth toward the high end of +2.5% to +3.0%
Company raises full-year adjusted EPS guidance to $7.20-$7.30 from $7.10-$7.20
Solventum maintains full-year free cash flow outlook at $200 mln to $300 mln
Result Drivers
ADVANCE ORDERS REVERSAL - Co said organic sales fell due to reversal of advance orders placed ahead of ERP system cutover
MARGIN DRIVERS - Gross margin rose due to portfolio optimization, product mix and savings programs, partly offset by inflation and tariffs
RESTRUCTURING COSTS - Higher operating expenses were mainly due to restructuring activities
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 sales | Slight Beat* | $1.95 bln | $1.94 bln (11 Analysts) |
Q3 Adjusted EPS | Beat | $1.45 | $1.35 (11 Analysts) |
Q3 Loss Per Share | $0.07 | ||
Q3 Net Loss | $12 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy"
Wall Street's median 12-month price target for Solventum Corporation is $100.00, about 11.9% above its November 4 closing price of $89.35
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago
Reuters Recommended Reads
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Nov 4 - Netherlands' Qiagen Q3 sales, adjusted EPS top outlook; suspends 2026 guidance
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)