Intuitive Surgical, Inc. (NASDAQ/ISRG) surged after the company reported second-quarter revenue and earnings soared past consensus projections.
On Wednesday, July 22nd, shares of the medical device maker surged to $554.09 from Tuesday’s close of $505.09, an increase of roughly 10%. Intuitive’s shares had fallen about 4.5% this year.
Robotic surgical system manufacturer revenue rose 14% to $586.1 million. Excluding share-based compensation costs and other items, earnings per share rose to $4.57 from $3.73. The company earned $134.5 million, or $3.56 a share—up from $104 million, or $2.77 a share a year earlier. (Source: Intuitive Surgical, July 22, 2015.)
The strong report was led by an increase in system placements, higher procedure volumes, and continuous global expansion.
The company shipped 118 da Vinci surgical systems. The da Vinci Surgical System is a sophisticated robotic platform designed to expand the surgeon’s capabilities and offer a state-of-the-art minimally invasive option for major surgery.
During the second quarter 2015, the company obtained Food and Drug Administration (FDA) 510(k) clearance for additional da Vinci Xi instruments, including the harmonic ACE curved shears product
The United States and Japan accounted for most of the growth in system sales, Chief Executive Gary Guthart said.
It was a great quarter overall for the company. They increased profit, revenue, and the number of procedures. The company also increased its outlook for the rest of 2015. Previously, Intuitive Surgical forecasted its procedural volumes in the range of eight percent to 11%, lower than current projections of 11% to 13%.
Analysts at Canaccord Genuity raised the stock to “buy,” from “hold,” and lifted its price target to $615.00. Despite some analysts having warned investors that safety and cost concerns have hurt sales of the company’s robots, it has posted revenue increases in recent quarters. If the company could to maintain its productivity, it wouldn’t be a surprise if shares flew.