Intuitive Surgical Rises 10% After a ‘Solid’, ‘Unexpected’ Earnings Beat By Investing.com

By Senad Karaahmetovic

Shares of Intuitive Surgical (NASDAQ:) have jumped 10% in pre-market trading after the maker of the da Vinci surgical system reported better-than-expected .

Intuitive Surgical reported an EPS of $1.19 on revenue of $1.56 billion to top the consensus of EPS of $1.12 on revenue of $1.51 billion. Overall, revenue soared +11% YoY, driven by a 15% surge in sales seen in the Instruments and accessories business unit. The company said that Da Vinci Surgical System installed base now stands at 7,364 systems, up +13% YoY.

Truist analysts said ISRG delivered a “solid” beat.

“We’re braced for a choppy capital environment over the next 12 months, but we remain LT bulls and see key tenets to LT sustainable mid-teens rev/EPS growth intact: most importantly, procedure growth is on an accelerating trajectory driven by increasing utilization. This, in our view, is the most important longer-term driver of system demand,” the analysts said in a client note.

Raymond James analysts highlighted “much more encouraging” results and commentary than previously. The analyst reiterated an Outperform rating and a $255 per share price target.

“In a nutshell, ISRG answered many of the topical near-term investor concerns. While we do not expect these concerns to fully abate, especially in a volatile market for growth equities, we came away from 3Q more encouraged with the underlying growth outlook… We continue to believe ISRG’s innovative technology has established a sizable moat, and carries a long runway of industry-leading growth,” Bedford said.