Procedure Growth Miss Drags Intuitive Surgical Lower Despite Q3 Beat
ISRG sits 31% above its 52-week low of $328.57.
Summary
Intuitive Surgical beat Q3 estimates with $3.0B revenue and $3.00 adjusted EPS, topping consensus by $140M and $0.36, but the stock fell as da Vinci procedure growth came in around 14% YoY and U.S. procedure growth of 10% landed 100-200 bps below elevated buy-side expectations. The company trimmed its full-year procedure growth outlook to 14%-15% from 13.5%-15.5%, and the midpoint now sits below the 14.8% consensus. Analysts at Leerink, Piper Sandler and J.P. Morgan all kept bullish ratings, arguing capital demand and system placements remain solid and that procedure growth is the one soft spot in an otherwise strong quarter. The debate is whether slowing U.S. procedure volumes are a temporary air pocket or the start of a deceleration in the recurring-revenue engine that drives the premium multiple.
At the time of this announcement, ISRG was trading at $432.01 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $152.6B. The 52-week trading range was $328.57 to $603.88. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.