Intuitive Surgical’s Q3 results surpass expectations

Intuitive Surgical (NASDAQ: ISRG) beat revenue and earnings expectations for the third quarter of 2019, sending the shares climbing 4.4% in aftermarket hours on Thursday.

Total revenue grew 23% year-over-year to $1.12 billion, beating estimates of $1.06 billion. The growth in revenue was driven by increased procedures and systems placements.  

GAAP net income was $397 million, or $3.33 per share, compared to $293 million, or $2.45 per share, in the prior-year quarter. Adjusted net income totaled $409 million, or $3.43 per share, topping forecasts of $2.99 per share.

During the quarter, worldwide da Vinci procedures grew nearly 20% versus last year, driven mainly by growth in US general surgery procedures and worldwide urologic procedures. Intuitive shipped 275 da Vinci Surgical Systems, which was up 19% from the prior-year period, and grew its da Vinci Surgical System installed base to 5,406 systems as of quarter-end, reflecting a year-over-year increase of 12%.

Also read: Intuitive Surgical Q3 2019 Earnings Preview

Instrument and accessory revenue increased 25% year-over-year to $606 million, mainly driven by a growth in da Vinci procedure volume. Systems revenue rose by 23% to $339 million.

Intuitive ended the third quarter with $5.4 billion in cash, cash equivalents, and investments.

In August, the company acquired Scholly Fiberoptic’s robotic endoscope business, which is expected to strengthen the supply chain and increase manufacturing capacity for imaging products.

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