Solventum (NYSE:SOLV) Announces Quarterly Earnings Results

Key Points

• Solventum exceeded quarterly expectations, reporting adjusted EPS of $2.55 versus the $1.90 consensus estimate and revenue of $2.21 billion versus expectations of $2.15 billion.
• Shares slipped 0.8% to $87.26 despite the earnings beat. The stock has traded between $62.38 and $88.65 over the past year and has a market capitalization of approximately $15.1 billion.
• Analyst sentiment remains mixed but improved, with UBS upgrading the stock to “buy” and setting a $95 target; the overall consensus rating is “Hold,” with an average price target of $86.

Solventum (NYSE:SOLV - Get Free Report) posted its quarterly earnings results on Wednesday. The company reported $2.55 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.90 by $0.65, FiscalAI reports. The business had revenue of $2.21 billion during the quarter, compared to analysts' expectations of $2.15 billion. Solventum had a net margin of 17.33% and a return on equity of 23.51%.

Solventum Trading Down 0.8%

Shares of NYSE SOLV traded down $0.68 during midday trading on Wednesday, reaching $87.26. 1,547,166 shares of the stock were exchanged, compared to its average volume of 1,410,159. The stock has a market capitalization of $15.11 billion, a P/E ratio of 10.69, a PEG ratio of 1.36 and a beta of 0.60. The company has a debt-to-equity ratio of 0.96, a quick ratio of 0.75 and a current ratio of 1.07. The company has a 50 day simple moving average of $78.87 and a 200 day simple moving average of $74.31. Solventum has a twelve month low of $62.38 and a twelve month high of $88.65.

Analysts Set New Price Targets

A number of analysts have recently weighed in on SOLV shares. UBS Group upgraded shares of Solventum from a "neutral" rating to a "buy" rating and set a $95.00 price objective on the stock in a research note on Tuesday, July 28th. KeyCorp increased their target price on shares of Solventum from $92.00 to $93.00 and gave the stock an "overweight" rating in a research note on Wednesday, May 6th. BTIG Research restated a "buy" rating and issued a $91.00 price objective on shares of Solventum in a research report on Monday, July 13th. Weiss Ratings upgraded shares of Solventum from a "hold (c)" rating to a "hold (c+)" rating in a research report on Friday, July 17th. Finally, Wells Fargo & Company cut their price objective on Solventum from $83.00 to $70.00 and set an "equal weight" rating for the company in a research note on Wednesday, May 6th. Seven equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $86.00.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in SOLV. State Street Corp lifted its stake in shares of Solventum by 2.0% in the 4th quarter. State Street Corp now owns 6,344,761 shares of the company's stock valued at $502,759,000 after purchasing an additional 124,490 shares during the last quarter. Boston Partners boosted its stake in Solventum by 26.1% during the third quarter. Boston Partners now owns 4,630,300 shares of the company's stock worth $338,006,000 after buying an additional 959,543 shares during the period. Invesco Ltd. raised its stake in shares of Solventum by 3.4% in the 4th quarter. Invesco Ltd. now owns 2,930,010 shares of the company's stock valued at $232,174,000 after acquiring an additional 96,236 shares during the period. Morgan Stanley raised its stake in shares of Solventum by 13.2% in the 4th quarter. Morgan Stanley now owns 1,660,906 shares of the company's stock valued at $131,610,000 after acquiring an additional 193,154 shares during the period. Finally, Northern Trust Corp boosted its position in shares of Solventum by 3.6% during the 3rd quarter. Northern Trust Corp now owns 1,596,490 shares of the company's stock worth $116,544,000 after purchasing an additional 56,146 shares during the period.

About Solventum

Solventum Corporation, a healthcare company, engages in the developing, manufacturing, and commercializing a portfolio of solutions to address critical customer and patient needs. It operates through four segments: Medsurg, Dental Solutions, Health Information Systems, and Purification and Filtration. The Medsurg segment is a provider of solutions including advanced wound care, I.V. site management, sterilization assurance, temperature management, surgical supplies, stethoscopes, and medical electrodes.

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