10:32 AM EDT, 10/16/2024 (MT Newswires) -- Abbott Laboratories ( ABT ) reported better-than-expected third-quarter results on Wednesday amid double-digit revenue growth in its medical devices segment, while the healthcare company narrowed its full-year earnings outlook range.

Adjusted earnings advanced to $1.21 a share for the quarter ended Sept. 30 from $1.14 the year before, ahead of the Capital IQ-polled consensus of $1.20. Sales inclined 4.9% year over year to $10.64 billion, topping the Street's view for $10.55 billion. The stock was up nearly 2.6% in Wednesday trade.

Diagnostics sales decreased 1.5% year over year to $2.41 billion, impacted by annual declines in COVID-19 testing revenue. The nutrition segment edged down 0.3% to $2.07 billion, while the established pharmaceuticals division rose 2.7% to $1.41 billion.

Revenue in the global medical devices business climbed 12% to about $4.75 billion, led by a 17% jump in diabetes care, according to Abbott. The company also recorded double-digit sales gains in electrophysiology, heart failure and structural heart.

"Our results this quarter demonstrate the strength of our diversified business model," Chief Executive Robert Ford said in a statement. "We're well-positioned to achieve the upper end of our initial guidance ranges for the year and have great momentum heading into next year."

For 2024, Abbott now expects adjusted EPS to be between $4.64 and $4.70, compared with its prior forecast range of $4.61 to $4.71. The Street is looking for normalized EPS of $4.66. The company reiterated its organic sales growth guidance of 9.5% to 10%, excluding COVID testing-related revenue, for the year.

For the ongoing three-month period, the firm anticipates adjusted EPS of $1.31 to $1.37 versus the Street's current estimate of $1.33. The company expects foreign exchange to be a headwind of less than 1% on sales in the fourth quarter, based on current rates, Chief Financial Officer Philip Boudreau said on an earnings call, according to a Capital IQ transcript.

"I think this is a great quarter now as we're into (the fourth quarter) and there's less COVID (comparisons), we'll see our EPS grow double digits back to the growth model that we had during pre-COVID," Ford told analysts on the call.

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