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Similac Recall Hits Abbott: Volume Movers

Abbott Laboratories was one of several stocks poised to move on above-average volume Thursday following a recall of its Similac baby formula.

BOSTON (TheStreet) -- Abbott Laboratories (ABT) - Get Abbott Laboratories Report was one of several stocks poised to move on above-average volume Thursday after the company announced Wednesday a voluntary recall of certain Similiac powder infant formula.

Abbott Laboratories

said the recall comes after the presence of beetle and larvae in certain Similac products produced in one production area in a single manufacturing facility. While the U.S. Food and Drug Administration has determined that the formula containing these beetles poses no immediate health risk, although infants could experience symptoms of gastrointestinal discomfort.

Abbott said that approximately $100 million in sales returns due to the Similac recall will reduce third-quarter revenue, although the company confirmed its earnings guidance range of $1.03 to $1.05 a share.

Shares of Abbott Laboratories slipped 0.3% in trading Wednesday and are down another 1% in early trading to $51.48. The average daily share volume for Abbott is 5.84 million.

Elsewhere,

Edward Lifesciences

(EW) - Get Edwards Lifesciences Corporation Report

shares rallied by $6.85, or 11.5%, to $66.55 in Wednesday's after-market session after the company said it has received approval from the U.S. Food and Drug Administration to begin U.S. clinical trials of its transcatheter heart valve. The average daily share volume for Edward Lifesciences is 1.13 million.

China Direct Industries

(CDII)

shares jumped by 10 cents, or 8.9%, to $1.22 in Wednesday's late-trading session after the company said late Wednesday its subsidiary has received a $30 million contract for the delivery of various types of reinforcing steel bars. The average daily share volume for China Direct is 280,000.

Red Hat

(RHT) - Get Red Hat, Inc. Report

shares are climbing by $1.95, or 5.3%, to $38.70 in the premarket session after the software company posted second-quarter adjusted earnings of 19 cents a share, topping the Thomson Reuters average estimate by a penny. Revenue climbed 20% to $219.8 million, also exceeding expectations. The average daily share volume for Red Hat is 3.12 million.

TheStreet Recommends

Bed Bath & Beyond

(BBBY) - Get Bed Bath & Beyond Inc. Report

shares are up $1.82, or 4.3%, to $43.87 in the premarket session after the retailer reported second-quarter earnings of 70 cents a share on sales of $2.14 billion, beating the average analyst forecast for earnings 63 cents a share on $2.10 billion in revenue.

Looking ahead, Bed Bath & Beyond expects third-quarter earnings of 61 cents to 65 cents a share, which is in line with forecasts. The company now expects full-year earnings to grow by 20%, up from its prior view that earnings per share would rise 15%. The average daily share volume for Bed Bath & Beyond is 3.4 million.

-- Written by Robert Holmes in Boston

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