Intuitive Surgical (ISRG) beat Wall Street’s quarterly sales and profit expectations Thursday, but ISRG stock tumbled as its installed robotic surgery base lagged forecasts.


During the June quarter, Intuitive Surgical brought the installed number of its main product, the da Vinci robotic surgery system, up to 8,042 globally, an increase of 12.5% from the same quarter a year earlier. But analysts polled by FactSet expected a bigger jump to 8,203. As a result, systems revenue of $393 million lagged expectations by $23 million.

In after-hours trading on the stock market today, ISRG stock toppled 4.8% near 331.

ISRG Stock: Sales, Earnings Beat

Overall, however, the second quarter largely represented an earnings beat for Intuitive Surgical. Sales advanced 15% to $1.76 billion, topping predictions for $1.74 billion. Adjusted profit ballooned nearly 25% to $1.42 per share.

Analysts expected Intuitive Surgical to earn $1.33 per share.

Procedures using Intuitive Surgical’s da Vinci systems increased 22%, helped by an easy comparison in the year-earlier period. During the same three months of 2022, increasing Covid cases cut down on procedure growth. That wasn’t the case during the June quarter.

Strong procedure growth helps bolster sales of one-time instruments and accessories.

Beat On Instruments, Accessories

During the June quarter, sales of instruments and accessories popped 20% to $1.08 billion, handily beating projections for $1.03 billion. Revenue from services — maintenance on the installed base of da Vinci systems — was in line with expectations at $287 million, and up 14%.

Though system revenue lagged forecasts, it climbed about 5%.

Intuitive Surgical didn’t offer an outlook. ISRG stock analysts had called for adjusted earnings of $5.49 a share and $7.14 billion in sales.

Shares have a strong Relative Strength Rating of 92 out of a best-possible 99, according to IBD Digital. This puts ISRG stock in the top 8% of all stocks when it comes to 12-month performance.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.


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