Intuitive Surgical beats first-quarter sales on higher procedure volumes

By Sriparna Roy

(Reuters) - Intuitive Surgical Inc beat estimates for first-quarter sales on Tuesday as the surgical robot maker recorded a rise in total procedure volumes.

Shares of the Sunnyvale, California-based company rose 9.18% to $294, after the bell.

The company reported quarterly sales of $1.70 billion, beating analysts' estimates of $1.60 billion, according to IBES Refinitiv data.

As pandemic-induced staffing shortages ease, the healthcare industry sees a recovery in medical procedures that could help boost the demand of surgical devices in the United States.

The medical device maker posted a 26% growth in procedure volumes of its surgical robot da Vinci in the first quarter through March from a year earlier.

Intuitive has been a market leader, while larger rival Medtronic Plc attempts to compete in the space, with its robotic surgical system Hugo, which is currently in clinical trials in the U.S.

"For many high-volume surgeons especially within the U.S. and Europe, the switching costs will be too immense initially as Intuitive continues to enhance its ecosystem", BTIG analyst Ryan Zimmerman told Reuters ahead of earnings.

Investors are eyeing the launch of company's new multiport surgical robot, which could be a potential near-term catalyst, analysts said after Intuitive in January told its next generation system is not expected to be launched this year.

"When they come out with the system, directionally I think it's going to have a big digital footprint - it could be a new form factor for something they already have and then it will definitely drive total addressable market expansion," RBC Capital Markets analyst Shagun Singh told Reuters.

Excluding items, Intuitive earned $1.23 per share in the first quarter, above analysts' average estimate of $1.20 per share, according to IBES data from Refinitiv.

(Reporting by Sriparna Roy in Bengaluru; Editing by Shweta Agarwal)