Intuitive Surgical saw its stock rise by more than 10% following news of its earnings beat. The Sunnyvale, CA-based company rebounded in earnings after facing headwinds earlier in the year.
The firm said that 3Q22 revenue of $1.56 billion increased 11% compared with $1.40 billion in the 3Q21. The higher third quarter revenue was driven by growth in da Vinci procedure volume, partially offset by a decline in system placements. On a constant currency basis, third quarter 2022 revenue increased 15% compared to the third quarter of 2021.
“Supply chain challenges, while still present, are abating from their pandemic peaks,” said Gary Guthart, Intuitive CEO, according to a transcript of the call from The Motley Fool. “Looking more closely at procedures, 20% growth is up from 14% last quarter and above our three-year compound annual growth rate of 16% during the pandemic. General surgery, our largest procedure category is growing at the fastest rate of any category fueled by bariatric surgery, cholecystectomy, hernia repair, and other foregut procedures in the U.S.
For much of the year Intuitive struggled with headwinds and looming competition in the surgical robotics space. Medtronic, its biggest rival in the space won CE mark for the Hugo robotic-assisted surgery system. Recently the Dublin-based company won a ton of approvals in Europe, Canada, and Japan.