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Intuitive Shares Tumble After Disappointing Q2 Results, FY13 Sales Outlook Weak (ISRG)

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Shares of Intuitive Surgical Inc. (NASDAQ: ISRG) plunged about 6.80% on Friday after the maker of da Vinci surgical systems handed weaker-than-expected fiscal second quarter results.

Late on Thursday, Intuitive Surgical reported that fiscal second quarter profit edged up 2.7% as usage of da Vinci robotics surgery equipments increased, however, the company sold less number of these equipments this quarter than the year ago period.

Earlier in July, the Company warned that fiscal second quarter results could miss Wall Street’s forecast as cost-conscious hospitals postponed purchasing decisions.

In the recently concluded quarter, Intuitive sold 143 da Vinci robotic systems compared to 150 machines sold in the same quarter of last year. The Company blamed weak demand in the U.S. market.

Revenue from da Vinci robotic systems fell 6% in the fiscal second quarter while revenue from related Intutive surgical instruments and accessories, jumped 18%.

For the fiscal second quarter, the Company reported a net income of $159.1 million or $3.90 a share compared to a net income of $154.9 million or $3.75 a share, in the year-earlier quarter.

Revenue jumped 7.8% to $578.5 million.

Analysts polled by Thomson Reuters had expected earnings of $4.04 a share on revenue of $622 million.

Earlier in July, the Company provided revenue guidance of $575 million. Gross margin narrowed to 70% from 72%, in the year-earlier quarter.

The Company also said that full-year sales growth is expected between flat and 7% while Wall Street’s expectation was for 14% growth.








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Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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