ISRG's report beat forecast, but lower guidance next quarter. Stock is overkilled.
Add more after hour.
Intuitive Surgical comes in ahead of forecasts, but shares getting no love
April 18, 2013, 6:01 PM
By Russ Britt
Shares of Intuitive Surgical weren’t feeling the love of after-hours investors Thursday after the maker of robotic surgery systems reported first-quarter earnings that soundly beat analyst forecasts.
It seems the investment community still was skittish over negative press the company has received of late — which has cast shares down roughly 15% since Feb. 15 — instead of noting that Intuitive Surgical ISRG -4.28% earnings beat estimates by 58 cents a share and revenue came in ahead of forecasts by nearly $30 million.
Intuitive Surgical said net income was $188.9 million, or $4.56 a share, compared with $143.5 million, or $3.50 a share, for the same period a year ago. Sales were $611.4 million against last year’s $495.2 million. Analysts polled by FactSet had expected earnings of $3.98 a share on sales of $582.6 million.
Despite the earnings beat, Intuitive shares kept falling in after-hours trading, compounding losses from a rough regular session. Shares ended the regular trading day down $14.27 to $493.37, a loss of nearly 3%. After hours, they dropped another 3%, or $17.27, to $476.10.
Intuitive shares tumbled when it was reported the U.S. Food and Drug Administration was examining an increase in complaints about the company’s da Vinci robotic surgery systems, along with questions over whether the devices offer any value-add over normal surgical procedures despite being more costly. But company officials have said that increased incident reports came about due to a revised reporting practice.
In a call with analysts Thursday, Chief Executive Dr. Gary Guthart indicated that all was operating normally with the da Vinci systems and surgeons who use the devices haven’t expressed any skittishness.
“We’ve seen very little change in their viewpoint,” Guthart said, referring to surgeons who use the da Vinci, “and likewise wit