Shares of Intuitive Surgical traded more than 8% higher on Wednesday following the company’s update to revenue guidance.
The company develops and manufactures robotic-assisted surgical systems, including the da Vinci Surgical System. These systems enable minimally invasive procedures using advanced robotics, 3D visualization and precise instrument control.
Intuitive's technology is widely used in fields like urology, gynecology, and general surgery, aiming to improve outcomes and reduce patient recovery times.
Share of the medical technology company have surged over the last year while many healthcare stocks have suffered.
Intuitive’s stock is currently trading 60% higher over the last twelve months. In comparison, the iShares Healthcare ETF (IYH) is only 2% higher for the same period.
On Wednesday, Intuitive’s management updated their guidance for its fourth quarter revenue above Wall Street analyst’s expectations. Intuitive Surgical’s earnings date is just over a week away on January 23.
The company cited a full recovery from years of supply chain constraints resulting from the Pandemic as its reason for seeing higher revenue. Last quarter, Intuitive Surgical grew top line revenue by more than 16%, its best showing since January 2022. In addition, the company beat its earnings target by $0.20.
Shares of Intuitive snapped above the top of its two-month trading range to close above $580 at new all-time highs.
Shares had spent the last two months battling at the round-numbered $550 level without giving much ground as Intuitive’s stock went through a healthy consolidation.
Both the short- and long-term technical trendlines r are in strong bullish trends forecasting higher prices and a $650 target price.