After the markets closed, however, came news that Intuitive Surgical will become a member of the S&P 500 index, which news typically causes index funds to purchase immediately the shares of the new addition. Intuitive Surgical shares reacted accordingly to the sudden onslaught of buy orders by surging to ~$287, and continued near that level Friday morning in pre-opening trades.
The company's release of 2008 profit projections of 40% over that of 2007 exceeds analyst estimates, leading to price surge in market value.
Intuitive Surgical Inc’s Q3 profit more than doubled, triggered by higher product revenue. The reported net income rose to $40.9 million, or $1.04 per share, as compared to $17.3 million, or 45 cents per share, for the same period last year. Total revenue increased 64 percent to $156.9 million and product revenue increased 66 percent to $135.1 million while analysts were expecting earnings of 79 cents a share, on revenue of $143.6 million.