Companies
Intuitive Surgical falls despite an earnings beat as a $450 million settlement charge weighs
Adjusted earnings and revenue topped estimates, but a legal charge cut GAAP profit.
Intuitive Surgical shares fell sharply after the robotic-surgery company reported third-quarter adjusted earnings of $3.00 a share and revenue up 22% from a year earlier, both above analyst estimates. The stock was down nearly 8% in premarket trading Wednesday.
The company recorded a $450 million pretax charge to settle antitrust class action litigation, which weighed on its GAAP net income. It was a reminder that a headline beat can still send a stock lower when a one-time cost or a cautious outlook comes with it.
Elsewhere in earnings, Netflix also fell premarket; see our Toast & Tickers for the morning's other movers.
