Intuitive Surgical (ISRG) reported better-than-anticipated third-quarter profits on Thursday, but its sales fell short, causing a sharp decline in ISRG stock.
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In the third quarter, Intuitive Surgical earned an adjusted $1.46 per share, a 3% rise and surpassing expectations by four cents, as reported by FactSet. However, sales fell short of forecasts at $1.74 billion, despite a year-over-year increase of 12%.
Notably, procedures utilizing the da Vinci robotic surgery systems from Intuitive Surgical experienced a 19% growth, exceeding expectations of 17.2%.
However, in after-hours trading, ISRG stock fell by 7.1%, trading at approximately 254.
ISRG Stock Is Linked to Procedure Growth
Procedure growth is a vital metric for Intuitive Surgical. As the number of procedures increases, so do the sales of one-time use instruments and necessary surgical accessories. Sales of instruments and accessories soared by 23% to $1.07 billion, surpassing the forecasted $1.06 billion.
In the third quarter, Intuitive Surgical installed 312 da Vinci systems, a seven-unit increase from the same period last year.
The decline in ISRG stock aligns with the ongoing pressure on Intuitive Surgical due to competition from Novo Nordisk (NVO) and Eli Lilly (LLY) in the field of bariatric surgery.
Intuitive Surgical did not provide full-year guidance. Analysts expect adjusted earnings of $5.58 per share and $7.13 billion in sales for ISRG stock.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
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