Abbott Laboratories fell just short of Wall Street estimates for quarterly revenue on Wednesday, as weakness in the medical device maker's cardiovascular business overshadowed strong performance in its fast-growing diabetes care unit.
Shares of the company, which also trimmed its full-year profit forecast, flitted between gains and losses. They were last up about 1.7%, after having risen about 13% to Tuesday's close.
"In this environment, investors are nervous. Any room for uncertainty, people react first and ask questions later. Post call ... I think people are comfortable with the growth algorithm here," said Evercore ISI analyst Vijay Kumar.
A 63% jump in sales of FreeStyle Libre continuous glucose monitor powered the diabetes unit's better-than-expected revenue of $665 million. Two analysts polled by Refinitiv had expected $645 million.
The device helps diabetics track blood sugar levels without having to prick their fingers, and the company is awaiting the Food and Drug Administration's approval for the next-generation version of the device, the Freestyle Libre 2.0.
However, a lack of updates on the approval also left investors skittish.
"Admittedly, it's taking longer than we had expected. We obviously misjudged that," Chief Operating Officer Robert Ford said on a conference call with analysts, but did not provide a timeline for the approval.
The cardiovascular business, the company's biggest that houses the MitraClip, posted sales of $2.40 billion, below estimates of $2.44 billion, according to two analysts polled by Refinitiv.
