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Benzinga
Benzinga
Business
Vandana Singh

HISTORICAL FACTS: Intuitive surgical q4 earnings beat street expects lower gross margin in fy22 - Caught on Camera

Intuitive Surgical Inc (NASDAQ:ISRG) reported Q4 adjusted EPS of $1.30, slightly ahead of the consensus of $1.28.

  • It reported revenues of $1.55 billion, +17% Y/Y, marginally ahead of Wall Street estimate of $1.52 billion, consistent with the preliminary results posted earlier this month.
  • The sales growth was driven by growth in da Vinci procedure volume and system placements.
  • Worldwide da Vinci procedures increased approximately 19% Y/Y, driven primarily by growth in U.S. general surgery procedures and growth in OUS markets.
  • The company held $8.6 billion in cash and equivalents at the end of Q4.
  • According to the Q4 conference call, the Q4 system average selling prices were $1.45 million, similar to $1.43 million last year and lower than $1.57 million last quarter. 
  • Instrument and accessory revenue per procedure were approximately $1,940 per procedure compared with $1,900 per procedure in Q3 FY21 and down 6% from $2,060 realized a year ago.
  • Pro forma gross margin of 70.1% was lower than 71.3% in Q3 FY21, primarily due to manufacturing inefficiencies and higher logistics costs, lower system ASPs, and a higher mix of systems revenue. 
  • Guidance: During 2022, Intuitive Surgical anticipates procedure growth of 11% - 15%, the lower end of the range assumes ongoing COVID pressure and hospital staffing shortages.
  • The company expects a slightly lower gross profit margin in FY22 than 71.2% in FY21, reflecting higher fixed costs and the impact of higher supply chain costs.
  • Price Action: ISRG shares are down 5.03% at $278.00 during the premarket session on the last check Friday.
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