California device maker Intuitive Surgical (NSDQ:ISRG) got a major after-hours boost after reporting Q2 numbers that, while still down year-over-year, beat Wall Street’s expectations by a mile.
The embattled company posted an 11.5% decline in revenues and a 35% drop in profits year-over-year, but adjusted per-share earnings came in 25% higher than analysts had expected. The news sent ISRG up more than 10% in after-market trading today, with shares going for $431.68 apiece as of about 4:35 p.m. EST.
In total the company posted profits of $104 million, or $2.77 per diluted share, on sales of $512.2 million during the 3 months ended June 30, 2014. That compared with profits of $159.1 million, or $3.90 per share, on sales of $578.5 million during the same period last year.
Excluding special items and charges, adjusted per-share earnings came to $3.73 for the most recent quarter, a far cry from the $4.63 last year but about 25% higher than the $2.81 consensus analyst estimate.
"I am encouraged by several trends in the quarter," president & CEO Gary Guthart said in prepared remarks. "First, global procedures grew 8% on a sequential basis and 9% year over year. We launched our newest platform, the da Vinci Xi Surgical System and the market reception for it has been very positive. Also during the quarter, we strengthened our direct presence in both Japan and Europe."
Intuitive Surgical shipped 96 new da Vinci surgical suites during the quarter, and more than half (50 in total) were the newly launched da Vinci Xi system, which won FDA clearance in April. Total systems revenue for Q2 2014 came to $143.7 million, down 33.4% from last year, but part of that was lost to a trade-out offer for customers who upgraded from the da Vinci Si to the Xi model.
Instrument and accessory revenue for the quarter dropped about 1% but services revenue increased 9%, reflecting growth in the base of da Vinci systems in hospitals.