Surgeons in China operate one of Intuitive Surgical's flagship products, a da Vinci surgical robot,... [+] to remove a tumor in 2015. Intuitive Surgical again beat revenue and earnings expectations, propelled by its da Vinci robotic surgical systems, when it reported its second quarter performance after the market closed Thursday. The company shipped 220 of its da Vinci surgical systems during the second quarter, compared with 166 in the same quarter last year, beating Wall Street estimates of 197. The number of worldwide procedures grew by 18% compared with last year, beating estimates of 14% growth, supported by a growing number of hernia and colorectal surgeries performed using the da Vinci system. During the second quarter, net income was $255 million and non-GAAP earnings per share rose to $2.76. Street analysts were looking for $2.50 per share. Revenue rose nearly 20% from a year earlier to $909 million, beating analyst estimates of $878 million. "We’re neither satisfied nor comfortable," CEO Gary Guthart said of the company's growth during the earnings call Thursday. Intuitive's near total command of the market has paved a clear path for growth over the last few years. The only other company that has FDA approval for soft tissue robotic procedures is Morrisville, North Carolina-based TransEnterix, and it just received FDA clearance in 2017. However, other companies, like Medtronic , Alphabet&#039;s Verb Surgical, Titan Medical and Johnson & Johnson are on Intuitive's heels. All are developing robotic surgery platforms, which could be available as early as 2020, says RBC Capital Markets analyst Brandon Henry. In the last quarter the Sunnyvale, California, company received a new FDA approval for a stapler instrument that surgeons can use with the da Vinci X and Xi systems. Instruments and accessory sales for the surgical systems make up over half of Intuitive's revenues. Beyond its da Vinci system products, Guthart noted that Intuitive plans to submit a new flexible catheter robotics platform that can be used to diagnose lung cancer for 510(k) approval in the second half of 2018. One uncertainty that Intuitive does face concerns future orders of da Vinci systems from China. As President Trump's talk of a trade war and proposed tariffs persists, Intuitive is still awaiting a timeline as to when the country plans to order additional systems. "China is an important market to us," Guthart said on the call. "We are going to have to work through the current macro challenges." According to RBC Capital Markets, China represents 3% to 4% of Intuitive's global procedures. To stay in the loop with Forbes Health coverage, subscribe to the Innovation Rx newsletter here.
Intuitive Surgical has once again exceeded expectations, thanks to the success of its da Vinci robotic surgical systems. The firm shipped 220 of its products during Q2, beating Wall Street forecasts of 197, and compared to 166 in the same period last year. Over the same period it saw revenue rise nearly 20% from a year earlier to $909m, exceeding analyst estimates of $878m.