![]() ![]() Intuitive Surgical CEO Gary Guthart commented, “Intuitive’s core business strengthened this quarter despite a challenging macroeconomic environment and some lingering pandemic impacts. These include general, thoracic, urologic, gynecological, and trans-oral head and neck surgeries. In September 2022, Japan’s Ministry of Health cleared the da Vinci SP Surgical System for use in specified surgeries. The Company placed 305 da Vinci systems, which was (-9%) less than the year-ago period, but the total install base rose by 13% YoY. Revenues grew by 11% year-over-year (YoY) to $1.56 billion beating analyst estimates of $1.52 billion. The Company reported an earnings-per-share (EPS) profit of $1.19 excluding non-recurring items versus consensus analyst estimates for a profit of $1.12, beating estimates by $0.07. On October 18, 2022, Intuitive Surgical released its fiscal third-quarter 2022 results for September 2022. All these concerns led to the disappointing Q2 2022 earnings results for the prior quarter. Additional headwinds included inflationary pressures, supply chain constraints, weakening economies, and China’s zero-COVID lockdowns. Investors feared that since each da Vinci system costs upwards of $2 million, sales would decline due to higher financing costs. Federal Reserve pressing on the gas pedal hiking interest rates to mitigate inflation. The Omicron resurgence in Q1 was particularly harmful to Intuitive as hospitals temporarily resumed surgery restrictions. Since the beginning of 2022 shares fell to a post-pandemic low of $180.07 as the bear market ravaged stocks. While healthcare is a defensive sector during bear markets, medical devices have still been hit by the overall market declines. The spread of COVID vaccinations and boosters have enabled economies to re-open and hospitals to resume surgeries again, driving shares of Intuitive Surgical towards a double top just under $370 by December 2021. This impacted other medical device makers as well like Boston Scientific (NYSE: BSX), Abbott Labs (NYSE: ABT), Stryker (NYSE: SYK), Becton Dickinson (NYSE: BDX), and Medtronic (NYSE: MDT). The stock fell to a pandemic low of $120.17 as hospitals put surgery procedures on the back burner to free up operating and emergency rooms for COVID-19 patients. A two-decade-old piece of robotic technology would be deemed a legacy product in the tech world, but the da Vinci installs are still robust rising 13% to 7,364 systems performing over 10 million procedures throughout 69 countries in the past year. Food and Drug Administration (FDA) approval in 2000. It’s hard to believe that the da Vinci Surgical System developed by Intuitive Surgical (NASDAQ: ISRG) is turning 22 years old since its U.S. ![]()
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