Meanwhile Q1 Non-GAAP EPS of $2.69 beat the Street’s expectations by $0.15, with GAAP EPS of $2.62 beating by $0.53.
According to Intuitive Surgical, higher first quarter revenue was driven by increased procedures and systems placements as well as higher service and operating lease revenue.
Worldwide procedures for its da Vinci robotic surgical system grew approximately 10% compared with the first quarter of 2019, with 237 da Vinci Surgical Systems shipped in the first quarter of 2020.
For the first two and a half months of the first quarter of 2020, procedure performance was trending at the higher end of our expectations, says ISRG.
“However… the Company experienced a significant decline in procedure volume and postponements of system placements in the latter half of March in the U.S. and Western Europe, as healthcare systems in those areas diverted resources to meet the increasing demands of managing COVID-19” the company stated.
Looking ahead, Intuitive Surgical told investors that it cannot now reliably estimate the future impact of the coronavirus pandemic on its operations and financial results.
But Bank of America’s Bob Hopkins remains optimistic about the company’s long-term prospects. “ISRG may face a challenging 12 months (our 2021 EPS estimate is 12% below consensus and further downside cannot be ruled out), but in our view, the company could end up even more dominant on the other side” he said.
With this in mind, the analyst reiterated his buy rating with a $650 price target (27% upside potential). In the last three months, 10 analysts have published buy ratings on ISRG vs 1 hold rating and 2 sell ratings, giving the stock its Moderate Buy analyst consensus. (See Intuitive Surgical’s stock analysis on TipRanks)
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