Intuitive Surgical Revenue Rises 18.5% to $2.89 Billion; Shares Fall on Cautious Guidance and Recall
Intuitive Surgical reported quarterly revenue of $2.89 billion, up 18.5% year over year, on July 16. The next day, shares fell sharply after the company issued cautious procedure volume growth guidance and announced a Class II recall for certain Da Vinci components. The stock hit a low of $328.57 on July 23 before rebounding. On Tuesday, it rose 5.7% to $356.83. Technical indicators suggest a near-term reversal, with the RSI recovering from oversold territory and the DMI lines converging since the July 23 low.
However, because the company gave cautious guidance on procedure volume growth and some Da Vinci components involved a Class II recall, the stock fell sharply the next day. On July 23, the stock hit a low of $328.57, then rebounded on July 24. This Tuesday, Intuitive Surgical shares rose 5.7% to $356.83.
On the technical side, the MACD (5,13,5) indicator generated a golden cross on Tuesday, but the MACD line remains in deeply negative territory at around -16, suggesting a recent reversal rather than a mature trend. The Relative Strength Index (RSI) fell below the oversold threshold of 30 on July 23 and recovered above 30 the next day, confirming a halt in selling pressure. In the Directional Movement Index (DMI), the negative directional indicator (DI-) remains above the positive directional indicator (DI+), at 36 versus 22, but the two lines have been converging since the July 23 low, which is often seen as an early sign of a change in trend structure. Trading volume has been two to three times the pre-earnings level since July 17, indicating genuine buying interest.