- Obama not worried about Ebola at upcoming African summit in D.C.
- Obama: ‘We tortured some folks’ after 9/11
- Obama administration asked whole D.C. Circuit to take on major Obamacare case
- Mark Levin: Topple GOP leadership or country will ‘unravel’
- Massachusetts to let police chief deny gun buys to those deemed unfit
- John Kerry condemns attack on Israeli soldiers, kidnapping
- U.S. starts to evacuate American Ebola patients from West Africa: Report
- Geraldo slammed as ‘dummy’ for backing Clinton’s bin Laden claim
- Israeli spokesman: No need to debate who broke the cease-fire
- 35 Palestinians killed; Israeli officer missing
Intuitive rises on 4Q sales, procedure outlook
Question of the Day
NEW YORK (AP) - Shares of Intuitive Surgical climbed Tuesday after the company said it will report stronger than expected revenue in the fourth quarter as procedures performed with its robotic da Vinci system increased.
Intuitive said that while sales of the da Vinci system fell, surgeons performed more procedures using the systems. It said total revenue fell 5 percent in the fourth quarter to about $576 million from $609 million a year ago.
But that was still higher than the $548.6 million in revenue that analysts surveyed by FactSet expected.
The company’s stock rose $37.38, or 9.5 percent, to $430.45 in morning trading. Its shares traded as high as $443.99, their highest in about two years.
The company said revenue from instruments used in da Vinci procedures grew 6 percent to $268 million. Intuitive Surgical Inc. said it sold 138 da Vinci systems during the fourth quarter, down from 175 a year ago, and revenue from system sales dropped 23 percent to $205 million. Service revenue rose 14 percent to $103 million.
The da Vinci system uses robotic arms, cameras and a remote-control console to help doctors perform surgery with tiny incisions. It is used in gynecological procedures, heart surgeries, prostatectomies, urology procedures, and other operations. In 2013 some experts questioned the use of da Vinci systems in routine hysterectomy procedures, saying the devices made the procedures more expensive but don’t improve outcomes for patients.
The Sunnyvale, Calif., company said in July that reduced hospital admissions and conservative management choices by insurers were hurting its business. Later the same month Intuitive received a warning letter from the FDA after an inspection, and in December the company said a few older systems were affected by a “stalling” problem. Shares of Intuitive have fallen 31.5 percent since Feb. 27.
Intuitive Surgical said da Vinci systems were used in more general surgery and gynecology procedures in the U.S. and urology procedures in other countries in 2013. Total procedure volume rose 16 percent to 523,000. For the full year Intuitive Surgical said its revenue rose 4 percent to $2.27 billion.
TWT Video Picks
By Orrin G. Hatch
Procedural changes impede the chamber's traditional deliberative function
- U.N. condemns Israel, U.S. for not sharing Iron Dome with Hamas
- Border agents cleared of civil rights complaints from illegal immigrant children
- Obama military strategy too weak for future security, panel reports
- Ben Carson takes major step toward presidential campaign
- Porn-surfing feds blame boredom, lack of work for misbehavior
- Pentagon wants extra $19M to equip, train Ukrainian troops
- 'Big Bang' star Mayim Bialik helps send bulletproof vests to IDF
- Feds raid S.C. home to seize Land Rover in EPA emission-control crackdown
- Australia issues arrest warrant for men believed to be homegrown ISIL terrorists
- Iraq Christians get meeting with top Obama aide
Top 10 U.S. military helicopters
Obama's biggest White House 'fails'
Celebrities turned politicians
Athletes turned actors