Intuitive Surgical (ISRG) needs some help, stat. Its shares have been down 15% in early trading. Intuitive makes the Da Vinci surgical robot. It now expects quarterly revenue of $575 million, when expectations had been for $630 million, so we're talking nearly a 10% shortfall. The drop is due in part to negligence lawsuits stemming from use of Da Vinci. Prior to the losses we're seeing this morning, Intuitive's shares were right about where they started the year, up just half a percent.
Next is another medical company in crisis: Natus (BABY). It dropped more than 13% yesterday after the company lowered its preliminary revenue outlook for the quarter. Shares had been up prior to the fall so they're down about 8.5% over the last week. Investors in Natus could have just put their money in something like a CD, with the shares up about 1% over the last year.
Now we look at WD-40 (WDFC), which we mentioned yesterday as a stock to watch because it was reporting earnings after the closing bell. Sure enough that report sent shares skyrocketing 14% in extended trading. The company easily beat estimates making 66-cents a share, a dime more than expectations. Revenue was also above consensus at $93 million. WD-40's namesake brand was the star for the quarter. It helped drive a 12% rise in profits despite disappointing sales for homecare and cleaning products. By the way, the company is also raising its outlook. Prior to the jump we're seeing this morning, shares of WD-40 have been up 19% year-to-date.
Finally there's Priceline (PCLN). It was up almost 4% yesterday hitting its highest price in more than a decade. Morgan Stanley has changed its rating of Priceline to overweight from equal weight, and it's upping the stock's price target to more than $1,000, about 11% higher than the stock is right now. Shares of Priceline are already up more than 725% over the past five years.
- Health Care Industry
- Intuitive Surgical
- Da Vinci