Intuitive Surgical Q1 Slightly Ahead Of Expectations, Revises FY22 Outlook

  • Intuitive Surgical Inc ISRG reported Q1 FY22 adjusted EPS of $1.13, ahead of the consensus of $1.08.
  • It reported revenues of $1.49 billion, +15% Y/Y, marginally ahead of Wall Street's estimate of $1.43 billion, driven by growth in da Vinci procedure volume and system placements.
  • Worldwide da Vinci procedures increased approximately 19% Y/Y, with placements of 311 systems, resulting in an expansion of the installed base of da Vinci systems of roughly 13%.
  • According to the Q1 conference call, system average selling prices were $1.54 million, higher than the $1.45 million last quarter. 
  • Instrument and accessory revenue per procedure were approximately $1,870 compared with $1,940 in Q4 FY21 and down 4% from $1,950 realized a year ago.
  • Pro forma gross margin of 69.8% was lower than 71.8% a year ago and 70.1% last quarter, primarily due to higher logistics and increased fixed costs.
  • Guidance: During 2022, Intuitive Surgical anticipates procedure growth of 12% - 16% versus prior guidance of 11%-15%, the lower end assumes ongoing COVID pressure and hospital staffing shortages.
  • The company expects a pro forma gross profit margin of 69% - 70.5%, versus the previous range of 69.5% - 70.5%.
  • The lower end of the range was updated to reflect the impact on input costs related to supply chain inflation and some impact from a stronger U.S. dollar.
  • Price Action: ISRG shares are down 4.44% at $281.50 during the premarket session on the last check Friday.


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