- Intuitive Surgical (NASDAQ:ISRG) is 1.7% lower after-hours, following beaten expectations on top and bottom lines in its Q3 earnings along with a clouded forward outlook.
- Overall, worldwide da Vinci procedures rose about 7% year over year. The company shipped 195 da Vinci Surgical Systems - down about 29% from a year-ago 275, but higher than an expected 191. The installed base for da Vinci rose 8% to 5,865 systems.
- Revenue fell 4% to $1.078B but topped expectations. Systems revenue fell 21% to $268M.
- GAAP net income fell to $314M from $397M; Non-GAAP net income dipped to $334M from $409M. Gross margin was 70.2%; operating margin was 37.3%.
- Revenue breakout: Instruments and accessories, $630.6M (up 4%); Systems, $267.8M (down 20.9%); Service, $179.3M (down 2.2%).
- It ended the quarter with $6.4B in liquidity, up $287M during the quarter, mainly driven by cash generated from operations.
- The COVID-19 pandemic has created a "significant impact to its procedure volumes and system placements" for the first nine months of the year. Impact and timing differ by geography: "In the U.S., for example, while da Vinci procedures have recovered a significant portion of the pre-COVID-19 levels, the resurgence of COVID-19 in some states has had, and will likely continue to have, an adverse impact on the Company’s procedure volumes."
- Due to ongoing uncertainty, "we cannot, at this time, reliably estimate the future impact on our operations and financial results."
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Conference call to come at 4:30 p.m. ET.
- Press release