(Reuters) -Intuitive Surgical raised concerns on Tuesday about the potential impact of tariffs on its annual results, despite exceeding Wall Street’s first-quarter profit and revenue estimates.
Shares of the Sunnyvale, California-based company fell 6% to $449.97 in after-hours trading.
Investors and analysts are closely monitoring how medical device makers will handle tariffs and whether they expect benefits from foreign currency fluctuations.
The company’s current outlook takes into account tariffs that are in effect or have been announced, but if additional tariffs are implemented, there could be “material” impact on the company’s 2025 results, it said.
Intuitive now projects its adjusted gross profit margin to be between 65% and 66.5% of revenue in 2025, which is lower than last year’s 69.1%. This range includes an estimated impact from tariffs of 1.7% of revenue, plus or minus 30 basis points, the company said.
The company operates in several international markets, notably Mexico and China. Over 90% of the instruments and accessories for its da Vinci Surgical Systems are produced at its facility in Mexico.
The effect of tariffs will depend on several factors, including volumes of system sales in China and the proportion of components procured and finished goods manufactured outside of the United States, the company said.
The volume of global da Vinci procedures rose about 17% compared to the same quarter last year.
Intuitive now expects worldwide da Vinci-assisted procedures to increase about 15% to 17% in 2025, compared to a previous range of 13% to 16%.
On an adjusted basis, the medical device maker reported earnings of $1.81 per share for the quarter ended March 31, beating analysts’ estimates of $1.72 per share, according to data compiled by LSEG.
The company reported revenue of $2.25 billion for the first quarter, compared to analysts’ estimates of $2.19 billion.
(Reporting by Kamal Choudhury in Bengaluru; Editing by Mohammed Safi Shamsi)
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