The pioneer and global technology leader in robotic-assisted minimally invasive surgery announced fourth-quarter adjusted earnings per share of $2.96, missing Zacks Consensus Estimate of $2.99. GAAP net income rose 13.8% year over year to $293 million, or $2.45 a share, compared with net loss of $32 million, or 28 cents, in the fourth quarter the prior year, which was affected by new tax regulations.
Revenue for the quarter rose 17% to $1.05 billion vs. $892 million for the same period the prior year. Analysts expected revenue of $1.04 billion. The company said revenue was driven by increased procedures and systems placements.
Fourth-quarter instrument and accessories revenue increased 18% to $539 million from $457 million the same period the prior year. The company said growth was driven by higher da Vinci procedure volume, the company's flagship product.
Da Vinci procedures increased 19% worldwide from the fourth quarter of 2017, led by growth in U.S. general surgery procedures and worldwide urologic procedures. The company shipped 290 da Vinci Surgical Systems in the fourth quarter of 2018, compared to 216 in the same period the prior year.
Systems revenue grew approximately 20% to $341 million from $285 million for the same period the year before. System shipments included 84 systems shipped under operating lease and usage-based arrangements, compared with 40 the prior year.
The company ended the quarter with $4.8 billion in cash, cash equivalents, and investments, that's an increase of $264 million for the quarter that the company says was driven primarily by cash generated from operations.
Over the past year Intuitive Surgical stock has rallied 19.2% compared with the S&P 500 index's 7% decline.