Earnings and revenues of robotic surgery leader Intuitive Surgical (Nasdaq: ISRG) rose sharply in the second quarter, aided by a further strong increase in the shipments of the flagship da Vinci Surgical Systems. The results also topped analysts’ expectations.
Shipments of da Vinci Surgical Systems increased 24% annually to 273 units during the quarter. Total da Vinci procedures rose by about 17% amid strong growth in the US general surgery procedures and worldwide urologic procedures.
Consequently, revenues climbed 21% year-over-year to $1.1 billion during the three-month period and slightly exceeded the market’s projection. Earnings, adjusted for special items, moved up 18% to $3.25 per share, beating analysts’ forecast. Unadjusted profit rose to $318 million or $2.67 per share from $255 million or $2.15 per share in the second quarter of 2018.
Total da Vinci procedures rose 17% amid strong growth in general surgery procedures and urologic procedures
“Intuitive’s performance in our second quarter was solid. Our teams remain focused on helping our customers improve outcomes and lower the total cost to treat per patient episode for their patient populations. By integrating human understanding, smart systems, imaging, instruments, and actionable insights, we aim to build solutions that help advance surgical care,” said CEO Gary Guthart.
As part of its efforts to expand the market for the da Vinci brand, the company recently acquired the robotic endoscope business of Scholly Fiberoptic. As per the terms of the deal, the 200-odd employees of Scholly will become part of Intuitive Surgical.
Also see: Intuitive Surgical Q1 2019 Earnings Call Transcript
After dominating the sector for several years, Intuitive Surgical is currently facing competition from a new wave of medical device makers, in addition to leading healthcare firms like Medtronic (MDT) and Johnson & Johnson (JNJ).
The company’s shares climbed to a record high in April but retreated in the following weeks. After much volatility, they are currently trading near the levels seen a year ago. The stock, which gained about 15% since the beginning of the year, closed Thursday’s regular session higher.