Intuitive Surgical’s first quarter revenue increased by 23% to $2.8bn (consensus $2.6bn). Growth in all revenue lines was underpinned by an acceleration in surgical procedures performed using Intuitive’s platforms, and higher system placements.
Underlying operating profit was up by 40% to $1.1bn (consensus $0.9bn), helped by a better gross margin and a relatively modest increase in operating expenses.
The company spent $1.1bn on share buybacks during the quarter, bringing cash on hand down to $8.0bn.
Full year guidance has been raised for both gross margin and procedure growth on the da Vinci platform by half a percentage point, to 67.5–68.5% and 13.5–15.5% respectively. The mid-point of underlying operating expense growth has also been reduced by half a point to 12.5%.
The shares were up 1.5% in pre-market trading.
Our view
HL view to follow.
Intuitive Surgical key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment.