Intuitive Surgical Stock Is Trading Lower: What's Going On?

Intuitive Surgical Inc ISRG shares are down nearly 10% Wednesday morning after the company reported worse-than-expected financial results. Multiple analysts also cut price targets on the stock following Intuitive Surgical's quarterly results.

What Happened: Intuitive Surgical said fourth-quarter revenue increased 7% year-over-year to $1.66 billion, which missed average estimates of $1.67 billion, according to Benzinga Pro. The company reported quarterly earnings of $1.23 per share, which missed estimates of $1.25 per share.

Worldwide da Vinci procedures jumped approximately 18% on a year-over-year basis despite a resurgence in COVID-19 in China, which negatively impacted procedure volumes in the region.

Intuitive Surgical said it placed 369 da Vinci Surgical Systems, representing a decrease of 4% year-over-year. The da Vinci Surgical System installed base grew to 7,544 systems, up 12% year-over-year.

The company ended the quarter with $6.74 billion in cash and equivalents. Intuitive Surgical also said it repurchased $1 billion of its common stock in the fourth quarter.

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Analyst Assessment: 

• Wells Fargo analyst Larry Biegelsen maintained Intuitive Surgical with an Overweight and lowered the price target from $305 to $289.
• Truist Securities analyst Richard Newitter maintained Intuitive Surgical with a Buy and lowered the price target from $310 to $300.
• Morgan Stanley analyst Cecilia Furlong maintained Intuitive Surgical with an Equal-Weight and lowered the price target from $290 to $265.
• BTIG analyst Ryan Zimmerman maintained Intuitive Surgical with a Buy and lowered the price target from $316 to $279.

ISRG Price Action: Intuitive Surgical has a 52-week high of $308.97 and a 52-week low of $180.07.

The stock is down 9.14% at $234.41 at time of publication, according to Benzinga Pro.

Photo: courtesy of Intuitive Surgical.