11:06 AM EDT, 07/18/2024 (MT Newswires) -- Abbott Laboratories ( ABT ) reported bigger-than-expected increases in second-quarter results on Thursday amid revenue growth in medical device and nutrition while the healthcare company raised its full-year earnings forecast.

Revenue advanced to $10.38 billion for the three months ended June 30 from $9.98 billion a year ago and topped the $10.37 billion average analyst estimate on Capital IQ. Adjusted earnings per share rose to $1.14 from $1.08, beating Wall Street's $1.10 view.

"In addition to benefiting from outperforming expectations on the top line, we are also seeing positive contribution from gross margin expansion coming from continued execution from our supply chain teams, lower commodity costs and favorable sales mix," Chief Executive Robert Ford told analysts on a conference call, according to a Capital IQ transcript.

In its largest segment by revenue, medical devices, sales jumped 10% to $4.73 billion, reflecting a double-digit increase in the US market and a high-single-digit gain internationally. Diabetes care led the division's growth, up about 16% to $1.65 billion, followed by 13% gains in both electrophysiology and structural heart.

In its diagnostics division, sales fell 5.3% to $2.2 billion amid year-over-year declines in COVID-19 testing. COVID-19 testing sales were $102 million in the quarter, compared with $263 million in the same period of 2023. Excluding COVID-19, division sales were up 1.8%.

Nutrition sales climbed 3.5% to $2.15 billion amid gains in its pediatric business, which includes infant formula, and its adult business led by Ensure.

Abbott lifted its full-year adjusted EPS guidance to a range of $4.61 to $4.71 from a prior view between $4.55 and $4.70. The Capital IQ-polled consensus was for normalized EPS of $4.63 in the ongoing year.

The company is now projecting year-over-year organic sales growth, excluding COVID-19, of between 9.5% to 10% in 2024, lifting the lower-end of the prior range from 8.5%.

For the third quarter, it's guiding adjusted EPS in the $1.18 to $1.22 range, versus the market view of $1.20 for the ongoing period.

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