Intuitive Surgical Sinks Despite Q4 Beat

Intuitive Surgical, Inc. (ISRG) reported fourth-quarter and full-year fiscal 2021 results in tandem with the Q4 preliminary results published on January 12, 2022. Despite beating both earnings and revenue expectations, the market was disappointed with the company’s projections of weaker procedure numbers for the near future.

Following the news, shares of the technology leader in minimally invasive care and pioneer in robotic-assisted surgery, sank more than 5% during the extended trading session.

Better-Than-Expected Q4 Results

ISRG reported Q4 revenue of $1.55 billion, a 17% year-over-year growth, outpacing analysts’ estimates of $1.52 billion.

Additionally, ISRG’s Q4 adjusted earnings came in at $1.30 per share, up 9.2% year-over-year, and 2 cents better than Street estimates of $1.28 per share.

Q4 Instruments and Accessories revenue climbed 13% to $843 million. The growth was attributed to a 19% year-over-year growth in worldwide da Vinci procedures volume.

Similarly, Q4 Systems revenue grew 28% year-over-year to $470 million, aided by shipment of 385 da Vinci Surgical Systems, which represents a growth of 18% compared to Q4FY20.

For the full-year fiscal 2021, ISRG reported revenue of $5.71 billion, a 31% annual growth. Instruments and Accessories revenue grew 26% annually to $3.10 billion, again driven by da Vinci procedures volume growth. Similarly, FY21 Systems revenue climbed 44% annually to $1.69 billion.

Meanwhile, FY21 adjusted earnings stood at $4.96 per share, up 45.9% compared to FY20 numbers.

Comments

Commenting on the impact of the COVID-19 pandemic, ISRG said, “The impact of the COVID-19 pandemic on the Company’s business has, and continues to, differ by geography and region. COVID-19 has had, and will likely continue to have, an adverse impact on the Company’s procedure volumes.”

Wall Street View

The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 7 Buys and 7 Holds. The average Intuitive Surgical price target of $333.15 implies 22.93% upside potential to current levels. Meanwhile, ISRG shares have gained 18% over the past year.

News Sentiment

TipRanks’ News Sentiment and Media Buzz Analysis shows the combined News Score based on ISRG’s News Sentiment and Media Buzz.

TipRanks data shows that the News Score for Intuitive Surgical is currently Very Positive based on 25 articles over the past seven days, at the time of writing. 100% of the articles have a Bullish Sentiment compared to a sector average of 58% while 0% of the articles have a Bearish Sentiment compared to a sector average of 42%.

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