Intuitive Surgical stock jumped late Thursday after the robotics behemoth smashed Wall Street's second-quarter earnings forecasts.
During the June quarter, Intuitive Surgical earned an adjusted $1.78 per share, climbing more than 25% year over year to crush expectations for $1.54 a share, according to FactSet. Sales also surged 14% to $2.01 billion, ahead of projections for $1.97 billion.
The company continues to manage through supply constraints to grow sales and earnings, Paul Marino, chief revenue officer of investment firm Granite Shares, said in an email to Investor's Business Daily. GraniteShares holds Intuitive Surgical stock in its Nasdaq Select Disruptors exchange traded fund.
"Any worries that Intuitive Surgical would not be able to meet demand because of product supply constraints was greatly exaggerated as they once again blew though top- and bottom-line expectations in what was supposed to be a challenging quarter," he said.
In after-hours trades on today's stock market, Intuitive Surgical stock popped 6.2% to 442. Shares closed the regular session sitting on their 50-day moving average after breaking out of a flat base with a buy point at 403.76, according to MarketSurge.
Intuitive Surgical Stock: Strong Procedure Growth
Importantly, the number of procedures using Intuitive Surgical's bread-and-butter robotic surgery system, da Vinci, advanced 17% vs. the same three months last year. That easily topped forecasts for 15% growth. Procedure growth from Intuitive's Ion machine, which does lung biopsies, grew 82%.
That helped bolster growth from instruments and accessories — tools that can only be used once in a surgical procedure. Revenue from this division climbed 16% to $1.24 billion. That topped the Street's projections for $1.23 billion.
Intuitive Surgical also grew its installed base of da Vinci systems to 9,203 systems, an increase of 14% compared to the end of the year-earlier period. That included 70 of its newest da Vinci Robotic Surgery 5 systems, which just launched in the U.S. this year.
Now, Intuitive Surgical stock is poised to open Friday above the 5% chase zone, which runs up to 423.95.
"It makes sense the share price is rewarded," GraniteShares' Marino said.
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