Robotic Surgery Gigant Slips 10% As Covid Disruptions Continue

0
32

Intuitive surgical (ISRG) reported lower-than-expected fourth-quarter earnings on Tuesday, sending ISRG shares slipping despite in-line sales.




X



During the December quarter, the robotic surgery giant earned $1.23 per share, down about 5% year-over-year. That fell two cents short of analysts’ projections.

Revenue was in line with Intuitive Surgical’s pre-announcement of $1.66 billion, though a hair short of Wall Street’s $1.67 billion call. Turnover increased by 7%.

In after-hours action in today’s stock market, ISRG shares fell 10.5% close to 231. The shares gained a fraction during the regular session to close at 257.98.

See also  China's great comeback has only just begun. How to play it.

ISRG Stock: Covid Outages Continue

The company noted that it continues to experience disruptions due to the Covid pandemic. Overall, the number of procedures performed with Intuitive Surgical’s most famous system, da Vinci, increased by 18%. On a year-over-year basis, litigation increased 14% from Q4 2019 to the same period last year.

Procedure growth is an important measure of the strength of one-time instrument and accessory sales. During the December quarter, sales of those items increased 12% to $941 million.

See also  Silvergate's 'Worst-Case Scenario' raises concerns about crypto

“The fourth quarter of 2022 reflected a resurgence of Covid-19 in China, which negatively impacted procedure volumes in the region,” Intuitive Surgical said in a press release. “The fourth quarter of 2021 also reflected Covid-19 disruptions later in the quarter in the US and Europe, which impacted our procedures.”

In total, Intuitive Surgical placed 369 new da Vinci systems in hospitals during the fourth quarter. But bearish for ISRG stock, that was down 4% year over year.

See also  Stocks come in after hours: Tesla, IBM, ServiceNow, Levi

Follow Allison Gatlin on Twitter at @IBD_AGatlin.

YOU MAY ALSO LIKE:

How J&J’s largely defunct Covid Shot still managed to hamper sales; Danaher dives

No. 1 IBD 50 Stock Catalyst tanks as Teva looks to beat its only product

Find today’s top growth stocks to watch with IBD 50

Want more IBD insights? Subscribe to our investing podcast!

Take advantage of short-term trends with SwingTrader

LEAVE A REPLY

Please enter your comment!
Please enter your name here