Intuitive Surgical Soars on Large Earnings Surprise

da Vinci Xi patient-side instruments, arms splayed. Source: Intuitive Surgical.

Shares of Intuitive Surgical (NASDAQ: ISRG  ) surged as much as 12.2% higher in after-hours trading, following the release of strong second-quarter results.

In the second quarter, Intuitive Surgical's non-GAAP sales declined 12% year over year, landing at $507 million. These adjusted revenues exclude $6 million of revenue associated with a guaranteed right of return program for the da Vinci Xi surgical system. The trade-out program was not in effect during the year-ago quarter.

Adjusted earnings declined 19% to $3.73 per diluted share.

Analysts were looking for earnings of $2.83 per share on $502 million in adjusted sales. Intuitive Surgical topped both of these consensus targets.

The company reported a 9% year-over-year increase in worldwide da Vinci-assisted surgeries, driven by general surgery volumes in the U.S. and urological procedures internationally.

Intuitive shipped 96 new da Vinci systems during the quarter, down from 143 systems in the comparable 2013 period and up from 87 systems in the first quarter of 2014. Fifty of this quarter's orders were for the recently introduced da Vinci Xi system.

In prepared remarks, Intuitive Surgical CEO Gary Guthart highlighted a handful of encouraging business trends. "First, global procedures grew 8% on a sequential basis and 9% year over year," he said. "We launched our newest platform, the da Vinci Xi Surgical System and the market reception for it has been very positive. Also during the quarter, we strengthened our direct presence in both Japan and Europe."

Leaked: This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and with more accuracy than anyone else. There's a product in development that will revolutionize how we treat a common chronic illness and could even change the entire health industry. Analysts are already licking their chops at the sales potential. To outsmart Wall Street and realize multibagger returns, you need The Motley Fool's new free report on the dream team responsible for this game-changing blockbuster. Click here now.


Read/Post Comments (0) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3039627, ~/Articles/ArticleHandler.aspx, 10/26/2014 4:34:14 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement