Intuitive Surgical Plunges Following Preliminary First Quarter Results

Shares of Intuitive Surgical

are trading sharply lower by 12.4 percent to $425 after the company issued preliminary first quarter results. Intuitive anticipating revenues of $465 million, much lower than $537.9 million analyst estimates. Revenues are anticipated to be lower 24 percent year over year. The revenue reflects a $26 million deferral associated with a customer trade-out program for the newly launched da Vinci Xi Surgical System. Excluding the impact of the trade-out program, revenue would have been $491 million, a decrease of 20% compared with the prior year. The Company also announced a pre-tax charge of $67 million to reflect estimated costs of settling a number of product liability legal claims related to alleged complications from surgeries performed with certain versions of Monopolar Curved Scissors instruments.