Since it was first recommended as a Motley Fool Rule Breakers pick in April 2005, shares of Intuitive Surgical (NYSE:ISRG) have soared nearly 350%. Additional evidence as to why it is a Rule Breaker was delivered today. In afternoon trading action, the medical device maker was trading more than 32% above its Thursday closing price. The mind-boggling run-up in price for a company with a market cap of more than $7 billion was driven by the company's Q2 earnings, which were released after market close Thursday.
The company, which makes robotic surgical equipment, reported an 84% increase in operating income on a 61% rise in revenue versus its 2006 Q2 results. The scorching growth in revenue was fueled by escalating demand for its da Vinci robotic surgical system. An added plus for shareholders was the fact that all three of Intuitive's business segments experienced revenue growth of more than 50% compared to the year-ago quarter.
For fans of the movie Transformers who are itching to integrate their enthusiasm for robots into their portfolios, two stocks to consider in addition to Intuitive Surgical are Hansen Medical (NYSE:HNSN) and iRobot (NASDAQ:IRBT). In early May, Hansen received FDA approval for two of its robotic systems, the Sensei Robotic Catheter System and the Artisan Control Catheter. Shares of Hansen have since experienced a significant pullback, however, and now trade 30% below the 52-week high that accompanied the FDA approvals.
And for Fools who have been shirking their household chores, iRobot's Scooba 380 is a floor-washing robot that can wash 850 square feet on a single charge. There is no question, though, that shareholders of Intuitive Surgical were the ones mopping up today.
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Fool contributor Billy Fisher does not own shares of any of the companies mentioned. Intuitive Surgical is a Motley Fool Rule Breakers recommendation. The Fool has a disclosure policy.
