What happened

Shares of Intuitive Surgical (ISRG 0.50%) slumped on Friday, plunging as much as 13.4%. As of 11:16 a.m. ET, the stock was still down 12.42%.

The catalyst that sent the medical device maker lower wasn't better-than-expected financial results, but a cautious forecast that failed to inspire investors.

So what

Intuitive Surgical generated first-quarter revenue of $1.49 billion, which climbed 15% year over year, resulting in gross profits that rose 12%. Unfortunately, higher costs weighed on operating income, which declined by 2%. This resulted in adjusted earnings per share (EPS) of $1.13. 

Medical staff in an operating room using the da Vinci surgical system.

Image source: Intuitive Surgical.

To put those numbers in context, analysts' consensus estimates were calling for revenue of $1.4 billion and adjusted EPS of $1.08, so the company exceeded expectations on both the top and bottom line.  

Fueling the solid growth was an increase in the number of worldwide medical procedures using its da Vinci robotic surgical system, which rose 19% year over year. Placement of new systems was tepid, as Intuitive Surgical placed 311 da Vinci systems, an increase of 4%. The total installed base of systems climbed to 6,920, up 13%.

Systems revenue of $428 million increased 16% year over year, while instruments and accessories revenue of $810 million climbed 15%.

Now what

On the conference call to discuss the results, management acknowledged the ongoing challenges related to the pandemic, which has resulted in order delays and patients continuing to postpone medical procedures. 

Management revised its guidance for procedure growth to a range of 12% to 16% for the full year, up from its previous guidance range of 11% to 15%. However, the company also acknowledged that its forecast "continues to reflect the uncertainty associated with the course of the pandemic," and that supply chain disruptions could further exacerbate the situation.

For those investing for the long term, this will amount to a mere blip on the radar. Patients that postponed necessary medical procedures will eventually have them done, which bodes well for Intuitive Surgical and its investors.