- Intuitive Surgical (ISRG.O) reported with earnings and revenue beating market expectations on increased demand for its da Vinci surgical robot this Thursday.
- This company’s results highlight the growing trend in the adoption of minimally invasive surgical technologies and reflect investor optimism about the medical device industry.
OUR TAKE
Intuitive Surgical has certainly caught the eye of investors with its report which beats expectations and signals strong market demand for the da Vinci surgical robot. The company’s success story is a testament to the resilience of the medical device industry and the growing reliance on advanced technology to meet suppressed medical needs.
-Rae Li, BTW reporter
What happened
Intuitive Surgical reported second-quarter profit and revenue that beat expectations on Thursday, as growing demand for its surgical robots used in minimally invasive procedures sent the company’s shares up 6.7% after hours. According to LSEG, the company post quarterly revenue of $2.01 billion for the quarter ended June, beating analysts’ expectations of $1.97 billion.
The revenue increase is partly due to growth in surgeries on the company’s surgical robot called da Vinci. The company says global da Vinci surgical volume rises about 17% from a year earlier.
Moreover, Industry leader Johnson & Johnson on Wednesday reported a 2.2% increase in second-quarter sales in its medical technology business, but that fell short of analysts’ expectations. Larger peer Abbott Laboratories also raised its annual profit forecast, helped by rising sales of its blood sugar monitors and demand for heart devices.
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Why it’s important
Investor expectations for medical device manufacturers have increased recently, mainly because people, especially the elderly, hope that the demand for surgical procedures will increase. This expected increase is due to the fact that during COVID-19 period, many people postponed medical procedures that they may now seek to complete.
As the outbreak eases and medical demand is released, the medical device industry is likely to see demand increase. Investors have reacted positively to the trend, expecting medical device makers’ results to benefit as a result.
