Abbott Laboratories reported a strong second quarter with revenue up 7.4% to $11.14 billion, beating estimates. However, disappointing forward guidance caused shares to fall 8%. Despite positive segment beats, poor guidance led to a lack of confidence from investors. Management tightened full-year EPS guidance and lowered profit outlook, affecting stock performance. Sales of Medical Devices and Established Pharmaceuticals exceeded expectations, while Diagnostics and Nutrition lagged. The ongoing litigation over specialized infant formula remains a concern for Abbott, but management stands behind the product. The company’s long-term outlook remains uncertain, prompting investors to wait for further clarity from management before making decisions.

Read more at CNBC: It’s all about the guidance