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What's in Store for Intuitive Surgical's (ISRG) Q3 Earnings?

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Intuitive Surgical, Inc. (ISRG - Free Report) is scheduled to release third-quarter 2021 results on Oct 19, after the closing bell.

In the last reported quarter, the company delivered an earnings surprise of 24.1%. Its earnings beat estimates in each of the trailing four quarters, the average surprise being 28.2%.

Q3 Estimates

Currently, the Zacks Consensus Estimate for third-quarter revenues is pegged at $1.39 billion, suggesting an improvement of 29.3% from the year-ago reported figure. The consensus mark for earnings stands at $1.19 per share, indicating growth of 29.4% from the prior-year quarter.

Factors to Note

The Instruments & Accessories segment is likely to have witnessed a strong third quarter backed by growth in da Vinci procedure volume. For the third quarter, the Zacks Consensus Estimate for the same is pegged at $772 million, suggesting growth of 22.3% on a year-over-year basis.

In second-quarter 2021, da Vinci procedures grew 68% while the company placed 6,335 da Vinci surgical systems, with the installed base growing 10% year over year. The momentum is likely to have continued in the third quarter.

Intuitive Surgical might have witnessed improvement with respect to international revenues in the to-be-reported quarter on the back of higher procedure volume.

Intuitive Surgical, Inc. Price and EPS Surprise

Intuitive Surgical, Inc. Price and EPS Surprise

Intuitive Surgical, Inc. price-eps-surprise | Intuitive Surgical, Inc. Quote

Despite COVID-19 induced disruptions, uptake of newly launched products and its latest endoscope, Endoscope Plus, have been encouraging.

Also, the company’s Ion program continues to move ahead as it placed 20 Ion systems in the second quarter, which has brought the installed base to 70.

With respect to digital capabilities, the company remains focused on improving its ecosystem. During the second quarter, Intuitive Surgical continued to engage customers in data analytics and opportunity analysis for surgical programs, which is the cornerstone of its Your Data, Your Truth analytics efforts.

The company advanced with the launch of My Intuitive, which is a mobile app enabling surgeons to manage their da Vinci experience, log into da Vinci systems, manage their training, and view their operative data from the palm of their hand. It has been of great help amid this public health crisis. During the second quarter, the company introduced this app to first users in Europe.

These developments are likely to have contributed to Intuitive Surgical’s third-quarter performance.

What Our Quantitative Model Suggests

Our proven model does not conclusively predict an earnings beat for Intuitive Surgical this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. This is not the case here as you will see.

Earnings ESP: Intuitive Surgical has an Earnings ESP of -2.76%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: It carries a Zacks Rank #2.

Stocks Worth a Look

Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.

Baxter International Inc. (BAX - Free Report) has an Earnings ESP of +1.06% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cardiovascular Systems, Inc. has an Earnings ESP of +24.59% and a Zacks Rank of 3.

Abiomed, Inc. has an Earnings ESP of +23.29% and a Zacks Rank of 3.


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