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Robotic Surgery Behemoth Surges On Bullish Quarterly Beat

Robotic surgery giant Intuitive Surgical (ISRG) wowed investors Tuesday after reporting 20% procedure growth for its da Vinci system, leading ISRG stock to jump.


Procedure growth is an important metric for Intuitive Surgical. The company sells or leases its robotic surgery system. But a key component of its revenue is the sale of one-time instruments and accessories. Growth in procedures leads to growth in those items.

Since the third quarter of 2019 — in the midst of the Covid pandemic — Intuitive Surgical has reported a 16% compound annual growth rate for procedures. The third quarter of 2022 easily outdid that at 20% and ISRG stock surged.

In after-hours trades on today’s stock market, ISRG stock jumped 7.5% near 208.30. Shares remain below their 50-day moving average, though they advanced 1.9% during the regular session.

ISRG Stock: System Placements Dip

Overall, revenue climbed 11% to $1.56 billion and beat forecasts for $1.51 billion, according to FactSet.

Intuitive Surgical placed just 305 da Vinci systems, down 9%. But offsetting that, revenue from one-time instruments and accessories advanced 15% to $872 million. The increase was primarily due to the 20% growth in procedure volume, partially offset by exchange-rate headwinds and buying patterns.

Intuitive Surgical also reported adjusted earnings of $1.19 per share, flat year over year. But that easily beat ISRG stock analysts’ forecast for $1.12 a share.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.


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