Intuitive Surgical (ISRG) expects Q1 revenue of $465M, -24% Y/Y and well below a $537.9M consensus. The company partly blames "a $26 million deferral associated with a customer trade-out program for the newly launched da Vinci Xi Surgical System."
Intuitive is also taking a $67M pre-tax charge for "estimated costs of settling a number of product liability legal claims against the Company."
Q1 accessories revenue is expected to fall 2% Y/Y to $255M. Da Vinci systems revenue is expected to fall 59% to $106M. Service revenue is expected to rise 11% to $104M.
87 da Vinci systems were shipped in Q1 (45 in the U.S.), down from 164 a year ago (115 in the U.S.).
The city of Birmingham pension fund recently joined the fray with its suit claiming that management knew of severe patient injuries and deaths related to the device as early as October 2011 but hid the information from regulators. Insider stock sales by certain executives during this time add fuel to the fund's complaint.
Intuitive faces 76 product liability lawsuits, suits from insurers accusing the firm of withholding claims and a securities class action complaint.
Shares are down 27% from the February 1, 2013 high of $585.67.
Analysts don't appear overly concerned. Consensus estimates for 2014 and 2015 are earnings of $14.96 on revenues of $2.3B and $17.09 on revenues of $2.5B, respectively.
1159 mutual funds have positions, down from 1256 a year earlier.
Intuitive Surgical (ISRG) -3.2% AH as Q4 earnings and revenue both fell Y/Y, with revenue in-line with the pre-announced $576M.
ISRG says it sold 138 da Vinci surgical systems vs. 175 during the same period last year; despite the drop, ISRG posted an increase in instruments and accessories sales during the quarter.
From the earnings call: Capital sales likely will be constrained in Japan until additional procedures reimbursement are obtained; this plus other issues such as gynecological procedures trends and ACA implementation will make forecasting H1 2014 revenue difficult.
Wedbush is out with some commentary on Intuitive Surgical (ISRG -2.6%) following the company's Q4 preannouncement.
Here's analyst Tao Levy's take: "While this mixed performance would have been viewed poorly a year ago, given the headwinds the company has been facing over the last few quarters, we view these results as very respectable."
Levy sees good things ahead for da Vinci and maintains an Outperform rating on the shares.
Price target is $514, representing upside of ~23% from Tuesday's close.