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Intuitive Surgical Inc. (ISRG - Analyst Report) revealed that it expects revenues of $576 million for the fourth quarter of 2013, reflecting a 5% decline from the year-ago level of $609 million. As a result, ISRG shares fell 1.7% after the market closed yesterday. However, expected revenues were higher than the Zacks Consensus Estimate of $556 million.

For full-year 2013, Intuitive Surgical expects revenues of $2,265 million, up 4% from $2,179 million in the prior year and up 1% from the Zacks Consensus Estimate of $2,245 million.

Expected Segment Results

Instruments and Accessories: ISRG anticipates revenues in this segment to go up 6% to $268 million in the quarter from $254 million in the prior-year quarter. For full-year 2013, Intuitive Surgical expects revenues to rise 14% to $1,033 million. The revenue growth in both the periods was attributable to rise in da Vinci procedure, partially offset by a reduction in stocking orders related to a fall in system sales.

According to ISRG, about 523,000 surgical procedures were performed with the help of da Vinci Surgical System in 2013, up 16% from 450,000 procedures performed in 2012. The growth was attributable to rises in general surgery procedures in the U.S., gynecologic procedures in the U.S., and urology procedures outside of the U.S. In the fourth quarter of 2013, da Vinci procedures grew 12% from the prior-year quarter.

Systems: Intuitive Surgical expects da Vinci Surgical Systems revenues to go down by 23% to roughly $205 million from $265 million in the 2012-quarter as 37 fewer da Vinci Surgical Systems were sold compared with 175 systems in the fourth quarter of 2012. For the full year 2013, Systems revenues expected to drop 11% to $835 million as 74 fewer units were sold compared with 620 systems in 2012.

Lower Systems revenues were attributable to moderating procedure growth in benign gynecology, and changing hospital capital spending priorities associated with the implementation of the Affordable Care Act, partially offset by higher international systems sales, due to better da Vinci system sales in Japan.

Services: ISRG anticipates revenues from this segment to enhance 14% to $103 million in the 2013-fourth quarter from $91 million in the 2012-quarter. For the full year, Intuitive Surgical expects revenues to grow 16% to $397 million from $343 million in 2012.

Intuitive Surgical expects to release its detailed fourth quarter and full year 2013 results on Jan 23, 2014. Currently, shares of the company retain a Zacks Rank #4 (Sell).

Some better-ranked in the medical instruments industry include CryoLife, Inc. (CRY - Snapshot Report), Natus Medical Inc. (BABY - Snapshot Report), and AngioDynamics Inc. (ANGO - Analyst Report). CryoLife and Natus Medical carry a Zacks Rank #1 (Strong Buy), while AngioDynamics carries a Zacks Rank #2 (Buy).

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