Shares of Intuitive Surgical, Inc. (ISRG: Quote) surged nearly 9 percent in extended trade on Tuesday after the surgical systems maker reported results for the fourth quarter that topped analysts’ expectations. The company also reported a profit that increase from last year, helped mainly by a double-digit revenue growth.
“We are pleased with our fourth quarter procedure performance and revenue growth. Our results reflect expanding da Vinci Surgical System use across a broadening array of procedures and strong execution by our team,” President and CEO Dr. Gary Guthart said in a statement.
The Sunnyvale, California-based industry leader in surgical robotics reported net income of $174.9 million or $4.25 per share for the third quarter, higher than $151.2 million or $3.75 per share in the prior-year quarter.
On average, 16 analysts polled by Thomson Reuters expected earnings of $4.04 per share for the quarter. Analysts’ estimates typically exclude special items.
Total revenues for the quarter grew 23 percent to $609.3 million from $496.80 million in the same quarter last year, and topped fifteen Wall Street analysts’ consensus estimate of $584.36 million.
The company stated that the revenue growth was driven by continued adoption of da Vinci surgery procedures and higher da Vinci Surgical System sales.
da Vinci surgical procedures grew about 25 percent from last year, driven primarily by U.S. gynecology and general surgery growth, and partially offset by a decline in U.S. prostatectomy procedures.
Revenues from instruments and accessories advanced 29 percent to $253.8 million, driven primarily by growth in ‘da Vinci’ surgical procedures and the introduction of new products.
Systems revenue increased 18 percent to $264.9 million, on sales of 175 da Vinci Surgical Systems compared to 152 system sales last year. Service revenues also increased 20 percent to $90.6 million, reflecting growth in the installed base of da Vinci Surgical Systems.
For fiscal 2012, the company reported net income of $656.6 million or $15.98 per share, higher than $495.1 million or $12.32 per share in the prior year. Total revenues for the full year grew 24 percent to $2.18 billion from $1.76 billion last year.
Street was looking for full-year 2012 earnings of $14.84 per share on annual revenues of $2.15 billion.
ISRG closed Tuesday’s regular trading session at $518.49, up $10.16 or 2.00% on a volume of 1.01 million shares. The stock soared a further $45.00 or 8.68% in after-hours trading.
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by RTT Staff Writer
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