Intuitive shares battered after Q3 revenue miss
Intuitive Surgical shares slumped after the company posted a 14 percent decrease in third-quarter net income on declining sales of its da Vinci surgical system.
Revenue slipped 7 percent from a year earlier, and the company said full-year sales would come in on the lower end of its previously cut forecast range.
Intuitive said its third-quarter results were affected by continued slow growth in the use of da Vinci in gynecology procedures. Shares fell 5 percent Friday afternoon. (What's the stock doing now? Click here)
Options expert Jon Najarian said the da Vinci's high cost of $1.5 million is one reason for the company's revenue drop.
The robotic device maker also reported that hospitals are increasingly cutting back on the use of their devices because of reimbursements tied to cost savings under the Affordable Care Act.
"Our third-quarter results were impacted by the same pressures we faced in the first half of the year—namely, moderating growth in benign gynecology, combined with changing hospital capital spending priorities associated with the implementation of the Affordable Care Act," Chief Executive Officer Gary Guthart said in the statement.
—By CNBC.com with AP.