07:04 AM EDT, 07/19/2024 (MT Newswires) -- Intuitive Surgical ( ISRG ) shares rose early Friday after the robotic surgical systems company reported better-than-expected results for the second quarter, driven by double-digit growth in procedure volumes.

Adjusted earnings came in at $1.78 a share for the June quarter, up from $1.50 the year before, the company said late Thursday. The consensus on Capital IQ was for $1.54. Revenue climbed 14% to $2.01 billion, topping the Street's view of $1.97 billion. The stock gained 5.7% in premarket activity.

Revenue in the instruments and accessories segment advanced 16% to $1.24 billion, mainly driven by roughly 17% growth in the number of procedures using the company's da Vinci robotic surgery systems and about 82% increase in Ion procedure volume. The growth was partially offset by customer buying patterns.

Procedures in the US rose 14% driven by gains in general surgery, Chief Financial Officer Jamie Samath said on an earnings call, according to a Capital IQ transcript. Outside the country, procedure volume increased 22%, aided by general surgery, gynecology and thoracic procedures.

Systems revenue inclined to $448.2 million from $392.7 million a year earlier. The firm placed 341 da Vinci surgical systems during the quarter, including 70 da Vinci 5 systems, versus 331 last year. Services revenue rose to $317.3 million from $287.3 million last year.

Total operating expenses rose to $805.4 million from $708.7 million last year, according to the company. The increase reflects ongoing benefit of planned leverage in enabling functions, Samath told analysts.

Intuitive Surgical ( ISRG ) now expects procedure growth of 15.5% to 17% in 2024, compared with its prior guidance of a 14% to 17% increase, the company's head of investor relations, Brian King, said on the call. "The low end of the range assumes further softening in bariatric procedures along with increasing headwinds in Asia from prolonged physician strikes in Korea and in China from delayed tenders and emerging domestic robotic systems impacting capital placements and, therefore, procedure growth," according to King.

Pro forma gross profit margin is set to be within 68.5% and 69% of net revenue for the year, up from the previous forecast of between 67% and 68%, King said. Pro forma operating expense growth is anticipated to be in a range of 10% to 13%, compared with the prior guidance of 11% to 15%.

Price: 437.00, Change: +20.86, Percent Change: +5.01