SOLV Earnings Prediction
The chart below shows how SOLV performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SOLV sees a -3.26% change in stock price 10 days leading up to the earnings, and a -2.83% change 10 days following the report. On the earnings day itself, the stock moves by +1.27%. This data can give you a slight idea of what to expect for the next quarter's release.
SOLV Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
2.08B
0.39%
0.05%
Gross Margin
55.96%
-4.00%
2.42%
Operating Margin
13.21%
-45.64%
12.62%
Net Margin
5.86%
-73.58%
36.92%
EPS
0.70
-73.78%
37.25%
No Data Available
SOLV Earnings Analysis
Solventum Corporation Corporation (SOLV.N) Earnings Conference Call
Positive
Sales Performance Surge: 1. Strong Sales Growth: Solventum reported Q3 2024 sales of $2.1 billion, reflecting a 30 basis point increase in organic growth compared to the prior year, with reported growth up 40 basis points, slightly exceeding expectations.
Operating Margin Improvement: 2. Improved Operating Margins: The company achieved an adjusted operating income of $475 million, resulting in an operating margin of 22.8%, which was ahead of expectations due to strong sales and one-time benefits in gross margin.
Free Cash Flow Surge: 3. Increased Free Cash Flow: Solventum generated $75 million in free cash flow during Q3, bringing the year-to-date total to $712 million, demonstrating strong cash generation capabilities post-separation.
Debt Paydown Strategy: 4. Debt Reduction Commitment: The company paid down $200 million of its $1.5 billion pre-payable term loans during the quarter, reinforcing its commitment to maintaining an investment-grade rating and prioritizing debt paydown.
Increased EPS Forecast: 5. Raised EPS Guidance: Solventum raised its full-year EPS guidance to a range of $6.50 to $6.65, reflecting improved sales outlook and stronger Q3 gross margins, indicating confidence in continued financial performance.
Negative
Dental Revenue Decline: 1. Decline in Dental Segment Revenue: The Dental segment reported a revenue decrease of 3.9%, attributed to challenging market conditions and tough year-over-year comparisons.
Purification Revenue Decline: 2. Negative Pressure in Purification and Filtration: The Purification and Filtration segment experienced a slight revenue decline of 0.3%, impacted by decreases in drinking water filtration and dialysis membranes.
Operating Expenses Rise: 3. Operating Expenses Increase: Operating expenses rose sequentially, reflecting public company stand-up costs and growth investments, which are expected to continue into Q4.
Gross Margin Pressure: 4. Gross Margin Decline: Gross margins decreased by 100 basis points year-over-year to 57.3%, despite a sequential increase of 180 basis points, indicating underlying pressure on profitability.
Revenue Growth Underperformance: 5. Underperformance in Revenue Growth: Overall revenue growth remains below market expectations, with management acknowledging that the performance turnaround will take time.
SOLV FAQs
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SOLV Earning Call Sentiment
Solventum Corporation (SOLV) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
SOLV.N
-0.77%Positive
The earnings call presents mixed signals: strong EPS and free cash flow guidance, debt reduction, and some segment growth are positives. However, challenges like gross margin decline, supply chain issues, and economic headwinds temper enthusiasm. The Q&A reveals uncertainty about future margins and portfolio management. Despite raised guidance, the one-time benefits and potential cost pressures for 2025 suggest caution. Without a market cap, the impact is uncertain, but the mixed factors likely lead to a neutral stock price movement.
