Abbott Laboratories (ABT)

[DewDiligence]

ABT fell 6% cumulatively_on_Thu/Fri_due_to infant-formula recall:

https://finance.yahoo.com/news/abbott-voluntarily-recalls-powder-formulas-221100997.html

Although ABT’s PR was issued after the market close on Thursday, news of the recall was already on the internet during trading hours.

Although ABT says the effect of the recall will not be material to 1Q21 financial results and ABT has reiterated 2022 non-GAAP EPS guidance of $4.70+, the blow to ABT’s reputation as a quality vendor may linger. Still, the 6% hit to the share price Thursday and Friday, which erased $13B in enterprise value, probably exceeded the actual damage on an NPV basis.