Abbott Falls Most in Nearly 24 Years on Formula Pricing Stumble

Abbott Laboratories said first-quarter profit will be lower than Wall Street expected after the company was forced to offer discounts on nutrition products to lure price-conscious customers, sending shares plunging.

The company forecast first-quarter adjusted earnings per share to reach $1.12 to $1.18, compared to the average Wall Street estimate of $1.19 a share. Analysts’ expectations were already low, as they anticipated the company to issue more conservative guidance to avoid the impact of Covid-19 testing sales, which have continued to decline since the pandemic.

In the fourth quarter, Abbott’s sales were $11.5 billion, below the average analyst estimate of ...