Investors are quick to re-value companies whose prospects improved. Last Friday, 3M (MMM) surged by around 23%, the best day in its history, after posting quarterly results.
3M posted revenue of $6.0 billion, up by 1.1% Y/Y, and earned $1.93 a share (non-GAAP). For FY 2024, it expects an adjusted EPS of $7.00 to $7.30. This is up from a prior forecast of $6.80 to $7.30. Expect 3M’s turnaround to continue after its successful spinoff of the healthcare business. It will mitigate risks by discontinuing PFAS manufacturing by the end of 2025, along with settling legal matters.
Mohawk Industries (MHK) gained 19.49% last Friday after posting revenue of $2.8 billion, down by 5.1% Y/Y. Bank of America upgraded the stock after predicting that margins would continue to rise. Still, it expects weak volume as consumer spending for high-ticket discretionary home improvement projects weakens.
Charter Communications (CHTR) broke out, rising by 16.62%, after posting Q2 results. The firm earned $8.49 a share. Although internet customers declined by 149,000, total residential and SMB mobile lines grew by 557,000.
For FY 2024, Charter expects its capital expenditure to fall to 412.0 billion, down by up to $400 million.
CHTR posted fair results. The rally may not hold after short sellers with an 8.68% short against the stock finish closing their bearish bet.
