In an impressive quarterly report, Abbott Laboratories has announced significant growth in its second-quarter results, surpassing analyst expectations and strengthening its position in the healthcare market. The company reported revenues of $10.38 billion for the quarter ending June 30, a notable increase from $9.98 billion in the previous year, and exceeding the average analyst forecast of $10.37 billion as per Capital IQ.
Moreover, adjusted earnings per share saw a rise to $1.14, up from $1.08, which also surpassed Wall Street's anticipatory figure of $1.10. Chief Executive Robert Ford highlighted the company's strong performance during a conference call, stating, "In addition to benefiting from outperforming expectations on the top line, we are also seeing positive contributions from gross margin expansion coming from continued execution from our supply chain teams, lower commodity costs, and a favorable sales mix." Focusing on the revenue breakdown, Abbott's medical devices segment, which generates the highest revenue for the company, demonstrated robust growth with sales soaring 10% to $4.73 billion.
This increase was driven by significant gains within the U.S. market, which showed double-digit growth, while international sales experienced a high-single-digit increase. Notably, diabetes care was a standout performer in this section, achieving a remarkable growth rate of about 16% to reach $1.65 billion.
This was complemented by 13% gains in both electrophysiology and structural heart markets, underscoring Abbott’s ability to innovate within these vital healthcare sectors. On a less favorable note, the diagnostics division of Abbott reported a decline in sales of 5.3%, amounting to $2.2 billion, primarily attributed to a year-over-year drop in COVID-19 testing revenues.
The company's revenue from COVID-19 tests was $102 million during the quarter, a decrease from $263 million compared to the same period in 2023. Nevertheless, when excluding COVID-19 related sales, this division experienced a modest growth of 1.8%. Further contributing to Abbott’s robust financial health, nutrition segment sales increased by 3.5% to reach $2.15 billion, reinforced by growth within its pediatric offerings, particularly infant formula, along with its adult nutrition products, led by Ensure. In light of these impressive results, Abbott has increased its full-year adjusted earnings per share guidance to a range of $4.61 to $4.71.
This revision is an improvement from the previous forecast of $4.55 to $4.70. The market consensus for normalized EPS stands at $4.63 for the year. Looking ahead, the company anticipates organic sales growth, excluding the impacts of COVID-19, to be between 9.5% to 10% for 2024, raising the lower-end projection from the prior estimate of 8.5%. For the upcoming third quarter, Abbott has provided guidance of adjusted earnings per share in the range of $1.18 to $1.22, compared to a market expectation of $1.20 for the same period.
Such projections indicate Abbott's strong trajectory in navigating the challenges within the healthcare landscape while continuing to deliver on performance metrics that appeal to investors. In conclusion, Abbott Laboratories continues to showcase resilience and growth potential through its diverse offerings in medical devices and nutrition, setting a positive forecast as it progresses through the financial year..