By RTT News, October 17, 2013, 08:43:00 PM EDT
(RTTNews.com) - Shares of Intuitive Surgical, Inc. ( ISRG ) plunged nearly eight percent in extended trade on Thursday after the surgical systems maker reported revenues for the third quarter that missed analysts' expectations, while earnings topped their estimates. The company reported a profit that decreased from last year, hurt mainly by a revenue drop amid lower sales of da Vinci systems.
"Our third quarter results were impacted by the same pressures we faced in the first half of the year - namely, moderating growth in benign gynecology, combined with changing hospital capital spending priorities associated with the implementation of the Affordable Care Act," President and CEO Gary Guthart said in a statement.
The Sunnyvale, California-based industry leader in surgical robotics reported net income of $156.8 million or $3.99 per share for the third quarter, lower than $183.3 million or $4.46 per share in the prior-year quarter.
On average, 19 analysts polled by Thomson Reuters expected the company to report earnings of $3.40 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter declined 7 percent to $499.0 million from $537.80 million in the same quarter last year, and missed eighteen Wall Street analysts' consensus estimate of $525.99 million.
Revenues from instruments and accessories advanced 10 percent to $239 million, driven primarily by a 16 percent growth in 'da Vinci' surgical procedures amid growth in general surgery, U.S. gynecology and international urology procedures.
Service revenues also increased 15 percent to $101.4 million, reflecting growth in the installed base of da Vinci Surgical Systems.
Meanwhile, systems revenue decreased 32 percent to $159 million as sales of da Vinci Surgical Systems declined to 101 from 155 system sales last year amid moderating growth in benign gynecology.
Operating income for the quarter decreased to $174 million from $211 million in the year-ago quarter.
"We remain confident in the long-term opportunity to fundamentally improve surgery using our technologies. We are focused on educating our community on the safety, efficacy and cost-effectiveness of our products, expanding our capabilities for general surgery, extending the benefits of minimally invasive surgery using da Vinci in gynecology and urology worldwide, and continuing our launch of new products to serve our customers and their patients," Guthart added.
ISRG closed Thursday's regular trading session at $399.13, down $2.20 or 0.55% on a volume of 1.04 million shares. The stock plunged a further $31.00 or 7.77% in after-hours trading.
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