Intuitive Surgical Shares Plunge 12% As Q2 Results Miss Estimates

(RTTNews) - Shares of Intuitive Surgical, Inc. (ISRG) plunged 12 percent in extended trade on Thursday after the surgical systems maker reported results for the second quarter that missed analysts' expectations. However, the company reported a profit that increase from last year, helped mainly by revenue growth amid continued adoption of da Vinci surgery procedures.

The Sunnyvale, California-based industry leader in surgical robotics reported net income of $159.1 million or $3.90 per share for the third quarter, higher than $154.9 million or $3.75 per share in the prior-year quarter.

On average, 19 analysts polled by Thomson Reuters expected earnings of $4.04 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter grew 8 percent to $578.5 million from $536.5 million in the same quarter last year, but missed eighteen Wall Street analysts' consensus estimate of $594.58 million.

The company's revenue growth was driven by continued adoption of da Vinci surgery procedures and higher da Vinci Surgical System sales.

da Vinci surgical procedures grew about 18 percent from last year, driven primarily by growth in U.S. gynecology, general surgery, and international urology procedures, partially offset by a decline in U.S. prostatectomy procedures.

Revenues from instruments and accessories advanced 18 percent to $265 million, driven primarily by growth in 'da Vinci' surgical procedures and the introduction of new products.

Meanwhile, systems revenue decreased 6 percent to $216 million as sales of da Vinci Surgical Systems declined to 143 from 150 system sales last year. Service revenues increased 18 percent to $98 million, reflecting growth in the installed base of da Vinci Surgical Systems.

ISRG closed Thursday's regular trading session at $421.47, up $5.93 or 1.43% on a volume of 0.77 million shares. However, the stock plunged $50.77 or 12.05% in after-hours trading.