Healthcare ETFs weakened Wednesday after Abbot Laboratories (NYSE: ABT) slipped on a revenue miss and revealed an uninspiring forecast for the first quarter of the new year.
The Health Care Select Sector SPDR ETF (NYSEArca: XLV) fell 0.3% on Wednesday while the S&P 500 was 0.1% lower.
Abbot Laboratories’ quarterly revenue fell short of expectations due to lower sales of generic drugs in the emerging markets, Reuters reports.
ABT shares declined 2.3% Wednesday after the announcement. ETFs with heavier tilts toward ABT were also dragged down by the report, with the iShares US Medical Devices ETF (NYSEArca: IHI) down 0.5% and First Trust Nasdaq Pharmaceuticals ETF (NasdaqGM: FTXH) 0.6% lower.
Furthermore, the healthcare company projected current-quarter earnings below analysts’ estimates. Some anticipated the stronger U.S. dollar to hurt profits as a large portion of their revenue comes from overseas sources.
“Some may look at these results and guidance as nothing too special, especially since Abbott had a lower tax rate than what we were anticipating, which helped this quarter’s results,” Edward Jones analyst John Boylan said.