(Adds forecast, details from conference call, share move)
By Bill Berkrot
Oct 18 Intuitive Surgical Inc on
Tuesday reported a 26 percent increase in third-quarter profit
on higher sales of its da Vinci surgical robots and double-digit
growth in procedures using the pricey equipment.
However, the company maintained its full-year forecast for
procedure growth of 14 percent to 15 percent, and its shares
The Sunnyvale, California-based company said it sold 134 da
Vinci systems in the quarter, up from 117 a year ago and 130
shipped in the previous quarter, at a cost of about $1.5 million
Procedures using da Vinci systems grew about 14 percent,
driven primarily by general surgery in the United States, such
as hernia repairs and colorectal surgeries, and by prostate
procedures outside the United States.
On a conference call with analysts, Intuitive said it reaped
about $1,870 per procedure, up from both a year ago and the
prior quarter. It said procedures grew by 25 percent outside the
United States, with uneven growth in Europe and continued
strength in China and South Korea.
Intuitive posted a net profit of $211 million, or $5.31 per
share, compared with a profit of $167.3 million, or $4.40, a
Excluding items, Intuitive said it earned $6.19 per share,
helped by a 77 cent tax gain. Analysts on average expected $5.14
per share, according to Thomson Reuters I/B/E/S.
Overall revenue for the quarter rose about 16 percent to
$683 million, topping analyst expectations for sales of $650.5
million. Instrument and accessory revenue rose by about 17
percent to $348 million, while service revenue increased about
10 percent to $130 million.
"Intuitive Surgical reported an impressive revenue and a
massive EPS beat," Evercore ISI analyst Vijay Kumar said in a
research note, adding that the results were driven by
higher-than-expected da Vinci system placements.
The company said it has added 400 employees year to date and
sees operating expense growth accelerating. For the quarter,
operating expenses rose to $230.6 million from $205.9 million a
Intuitive shares slipped 1.6 percent to $710 in extended
trading. Its share price is still up about 30 percent for the
(Reporting by Bill Berkrot in New York; editing by Will Dunham
and Alan Crosby)