Intuitive Surgical (NSDQ:ISRG) shares jumped in after-hours trading yesterday as investors reacted to 2nd-quarter numbers that handily topped expectations on Wall Street.
The robot-assisted surgery company posted profits of $184.5 million, or $4.71 per share, on sales of $670.1 million for the 3 months ended June 30, for a bottom-line gain of $37.2% on sales growth of 14.3% compared with Q2 2015.
Adjusted to exclude 1-time items, earnings per share were $5.62, 65¢ ahead of The Street, where analysts were looking for sales of $640.8 million.
Investors reacted by sending ISRG shares up 6.9% to $717.99 apiece after hours yesterday.
“We are pleased with our second quarter procedure growth and operational performance. Our focus remains on developing and bringing to market our products and services that allow surgeons to improve outcomes and total cost to treat economics,” president & CEO Gary Guthart said in prepared remarks.
Calvin Darling, senior director of finance & investor relations, told analysts during a conference call yesterday that Intuitive is raising its outlook on procedure growth and gross margin. The company now expects procedures this year to grow 14% to 15% from the 652,000 performed in 2015, up from prior guidance for 12% to 14%, Darling said. Gross margins are expected to be 70% to 71% of net revenue, up from 69% to 70% previously, he said, according to a transcript by Seeking Alpha.