Intuitive Surgical Outperforms in Q4 with Stellar Earnings and Procedure Growth

Intuitive Surgical, a frontrunner in robotic surgery systems, has reported a stellar performance in its Q4 earnings, significantly surpassing market forecasts. The company's earnings stood at $1.60 per share, excluding non-recurring items, thereby outdoing the anticipated $1.48 by $0.12. Revenue also saw a notable year-over-year increase of 16.6%, reaching $1.93 billion – a figure that corresponds with its January 8 guidance and surpasses the expected $1.89 billion.

The remarkable results were largely fueled by a 21% year-over-year surge in global da Vinci procedures. The quarter also saw Intuitive Surgical placing 415 da Vinci surgical systems, a notable increase from the 369 systems positioned in the same quarter of the previous year.

Looking ahead, Intuitive Surgical will likely provide FY24 da Vinci procedure growth guidance during its earnings call. Although 2023 saw significant growth, the company is tempering expectations slightly for 2024, projecting a procedure growth rate between 13% and 16%.

The robust increase in procedures during Q4 led to a 22% rise in sales of instruments and accessories for single-time use. The company's stock (ISRG) has responded favorably to these developments, showcasing a notable rally in post-earnings trading.

While specific earnings or sales projections for the upcoming fiscal year were not disclosed, analysts are estimating $6.42 in earnings per share and $8.08 billion in sales, with a 14.8% forecasted growth in procedures. Following the announcement, ISRG stock experienced a significant uptick of over 6% to $395 in after-hours trading, post a 1.2% decline in the regular session.

Intuitive Surgical's stock recently emerged from a cup-with-handle base, achieving a buy point at $318.26. It is now nearing the profit-taking zone, typically 20% to 25% above this entry level. This latest earnings report not only underscores Intuitive Surgical's ongoing dominance in the robotic surgery arena but also signals the company's resilience and capacity for innovation, even amid expectations of a modest slowdown in growth for the year ahead.

$ISRG(ISRG)