Intuitive Surgical, Inc. (NASDAQ: ISRG) is anticipated to report its second-quarter earnings subsequent week, amid expectations for robust income and revenue progress. The medical gadget maker is prospering on the widespread shift to minimally invasive surgical procedures globally, a development that’s anticipated to collect additional momentum within the coming years.
Shares of Intuitive Surgical have gained a whopping 32% this 12 months and hit a brand new excessive two weeks in the past. Staying on an upward spiral since October final 12 months, ISRG is among the best-performing Wall Road shares. Even after the robust grains, the blue-chip inventory stays a compelling funding possibility, because of the distinctive portfolio led by the corporate’s flagship da Vinci robotic surgical programs, which stays a preferred selection for minimally invasive surgical procedures.
Outlook
Intuitive Surgical’s robust fundamentals and the fast adoption of its units justify the comparatively excessive valuation. With every gadget sale, the corporate secures recurring revenues from the supply of equipment and different companies through the contract interval. For the reason that firm is working to combine new options primarily based on AI and machine studying applied sciences, its programs are anticipated to play a a lot greater function in performing procedures with a excessive degree of precision, thereby considerably bettering affected person outcomes.
Lately, the superior fifth-generation da Vinci system obtained FDA clearance. Market watchers are bullish of their outlook on surgical robots and forecast continued robust demand progress, which bodes nicely for the corporate. After making a powerful begin to fiscal 2024, Intuitive Surgical appears to be like poised to repeat the spectacular efficiency it delivered within the first quarter.
The second-quarter report is anticipated to be launched on Thursday, July 18, at 4:05 pm ET. The consensus earnings estimate for Q2 2024 is $1.54 per share, up 8.5% from the revenue the corporate earned within the year-ago quarter. The constructive outlook represents an estimated 13.4% income progress to $1.97 billion within the June quarter.
Key Metrics
Final fiscal 12 months, the corporate’s revenue, on a per-share foundation, beat estimates each quarter and the development continued in early 2024. First-quarter adjusted revenue climbed 22% year-over-year to $1.50 per share. At $1.89 billion, revenues had been up 11% year-over-year and barely above specialists’ projections. Devices & Equipment, which symbolize practically 60% of revenues, grew a powerful 18%. Worldwide da Vinci procedures continued to develop in double digits, whereas the put in programs base climbed to a brand new excessive.
From Intuitive Surgical’s Q1 2024 earnings name:
“The first quarter of 2024 was a solid one for Intuitive, where core measures of our business remain healthy including solid procedure growth and capital placements. Furthermore, our teams delivered important milestones across several parts of our Intuitive ecosystem, including launching our next-generation multiport platform, da Vinci 5, launching our da Vinci SP platform in Europe, and improving our supply constraints for Ion catheters… Taken together, we remain enthusiastic about our opportunity and we’ll work through near-term pressures by focusing on what we can control.”
The inventory value practically doubled prior to now two years and regularly outperformed the market throughout that interval. ISRG traded at round $445 on Friday afternoon.
