ISRG Stock: Is The Post-Covid Robotic Surgical Era Here?

Robotic surgery giant Intuitive Surgical (ISRG) wowed investors Tuesday after reporting 20% procedure growth for its da Vinci system, leading ISRG stock to jump.

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Procedure growth is an important metric for Intuitive Surgical. The company sells or leases its robotic surgery system. But a key component of its revenue is the sale of one-time instruments and accessories. Growth in procedures leads to growth in those items.

Since the third quarter of 2019 — in the midst of the Covid pandemic — Intuitive Surgical has reported a 16% compound annual growth rate for procedures. The third quarter of 2022 easily outdid that at 20% and ISRG stock surged.

In after-hours trades on today’s stock market, ISRG stock jumped 7.5% near 208.30. Shares remain below their 50-day moving average, though they advanced 1.9% during the regular session.

ISRG Stock: System Placements Dip

Overall, revenue climbed 11% to $1.56 billion and beat forecasts for $1.51 billion, according to FactSet.

Intuitive Surgical placed just 305 da Vinci systems, down 9%. But offsetting that, revenue from one-time instruments and accessories advanced 15% to $872 million. The increase was primarily due to the 20% growth in procedure volume, partially offset by exchange-rate headwinds and buying patterns.

Intuitive Surgical also reported adjusted earnings of $1.19 per share, flat year over year. But that easily beat ISRG stock analysts’ forecast for $1.12 a share.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.

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