Helped by improved traction for procedures using its da Vinci Surgical System, Intuitive Surgical (NASDAQ:ISRG) surged more than 14% on Friday after revealing a much stronger-than-expected jump in fourth-quarter profit.
The Sunnyvale, Calif-based company posted net income of $121 million, or $3.02 a share, up 55% compared with $78 million, or $1.95 a share, in the same quarter last year, trumping the Street’s view of $2.25.
Revenue for the industry leader in surgical robotics, was $389 million, up 21% from $323 million a year ago, ahead of average analyst estimates polled by Thomson Reuters of $369.9 million.
Earnings were fueled by a 33% revenue gain in its instruments and accessories segment, due primarily to 35% growth of da Vinci surgical procedures. The system is used in urologic, gynecologic, cardiothoracic, head and neck and other general surgeries.
Intuitive CEO Gary Guthart said the company was pleased with the earnings and revenue growth, noting da Vinci is expanding across a broadening group of surgical procedures.
A 10% improvement in systems revenue and a 27% gain in services also contributed to the results.