Medical device maker Intuitive exceeds estimates due to strong demand for surgical robots

Intuitive Surgical beat Wall Street estimates for first-quarter profit and revenue on Thursday, thanks to higher demand for its robots used in minimally invasive procedures.

Investor expectations for the performance of medical device makers have increased since November last year as people, especially older adults, opted for postponed medical procedures during the pandemic.

Intuitive, which makes surgical robots called Da Vinci, earned $1.50 per share on an adjusted basis for the quarter ended March 31.

Analysts estimate an average of $1.41, according to LSEG data.

The company’s revenue rose 11% to $1.89 billion this quarter, up from an estimated $1.87 billion.

Globally, the number of da Vinci procedures grew by approximately 16% compared to the first quarter of 2023.

Shares of the California-based company rose more than 3% in after-the-bell trading.

Industry leader and rival Johnson & Johnson said Tuesday it continues to expect medical procedure volumes related to medical technology to remain high through 2024, despite missing estimates for quarterly medical sales.

Brokerage Evercore ISI had subsequently said that a decline in sales of J&J’s surgical devices likely reflects the loss of market share to Intuitive.

Intuitive had forecast in January that procedures using the da Vinci surgical robot would grow between 13% and 16% by 2024. That compares to growth of about 22% in 2023.