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Chicago, IL – January 25, 2024 – Today, Zacks Investment Ideas feature highlights Intuitive Surgical (ISRG - Free Report) .
Medical Instrument Provider Eyes Breakout Amid Upbeat Earnings Results
Robotic surgery giant Intuitive Surgical topped earnings views after the bell on Tuesday, marking the company’s fourth consecutive quarterly beat. The company is the maker of the popular da Vinci Surgical System, which enables complex surgery using a minimally-invasive approach.
The da Vinci System is powered by robotic technology, which has provided Intuitive Surgical with solid exposure to artificial intelligence for healthcare. The system provides 3D High-Definition vision, enabling surgeons to gain superior clarity of target tissue and anatomy.
Healthy customer demand for its products persisted during the quarter. A growing presence outside of the United States bodes well for Intuitive Surgical moving forward.
Fourth-Quarter Results Exceed Estimates
Intuitive Surgical, currently a Zacks Rank #3 (Hold), reported earnings of $1.60/share for the fourth quarter, a 30% year-over-year jump. The figure translated to an 8.84% positive EPS surprise versus the $1.47/share Zacks Consensus Estimate. The company has delivered a trailing four-quarter average earnings surprise of 5.83%.
Revenues of $1.93 billion were in line with estimates and rose 16.5% versus the year-ago period, boosted by a 22% spike in sales of one-time use instruments and accessories. The company witnessed a 21% increase in the number of procedures, continuing the trend of improving procedure volume.
Looking ahead, the growth trend is expected to remain in place. Estimates for fiscal 2024 are stable, with full-year earnings expected to climb 11.38% to $6.36/share. Revenues of $8.04 billion would mark a 12.81% improvement versus last year.
ISRG Stock Performance
ISRG stock completed a powerful cup-with-handle breakout earlier this month, and today’s pullback presents a viable buying opportunity. The stock has risen more than 40% in the past year, widely outperforming the major indices. Renewed strength in the health care sector is providing a durable backing for this industry leader.
Intuitive Surgical is part of the Zacks Medical – Instruments industry group, which currently ranks in the top 48% out of more than 250 Zacks Ranked Industries. Because it is ranked in the top half of all Zacks Ranked Industries, we expect this group to outperform the market over the next 3 to 6 months.
Quantitative research studies suggest that approximately half of a stock’s price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1. It’s no secret that investing in stocks that are part of leading industry groups can give us a leg up relative to the market. By focusing on leading stocks within the top 50% of Zacks Ranked Industries, we can dramatically improve our stock-picking success.
Bottom Line
A growing adoption of minimally-invasive, robot-assisted surgeries and self-automated, home-based care is helping to drive future innovations. Increased usage of the company’s da Vinci System, improving procedure volumes, and solid recurring revenue are key catalysts.
Backed by a top industry group and impressive history of earnings beats, the future looks bright for this market leader.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: Intuitive Surgical
For Immediate Release
Chicago, IL – January 25, 2024 – Today, Zacks Investment Ideas feature highlights Intuitive Surgical (ISRG - Free Report) .
Medical Instrument Provider Eyes Breakout Amid Upbeat Earnings Results
Robotic surgery giant Intuitive Surgical topped earnings views after the bell on Tuesday, marking the company’s fourth consecutive quarterly beat. The company is the maker of the popular da Vinci Surgical System, which enables complex surgery using a minimally-invasive approach.
The da Vinci System is powered by robotic technology, which has provided Intuitive Surgical with solid exposure to artificial intelligence for healthcare. The system provides 3D High-Definition vision, enabling surgeons to gain superior clarity of target tissue and anatomy.
Healthy customer demand for its products persisted during the quarter. A growing presence outside of the United States bodes well for Intuitive Surgical moving forward.
Fourth-Quarter Results Exceed Estimates
Intuitive Surgical, currently a Zacks Rank #3 (Hold), reported earnings of $1.60/share for the fourth quarter, a 30% year-over-year jump. The figure translated to an 8.84% positive EPS surprise versus the $1.47/share Zacks Consensus Estimate. The company has delivered a trailing four-quarter average earnings surprise of 5.83%.
Revenues of $1.93 billion were in line with estimates and rose 16.5% versus the year-ago period, boosted by a 22% spike in sales of one-time use instruments and accessories. The company witnessed a 21% increase in the number of procedures, continuing the trend of improving procedure volume.
Looking ahead, the growth trend is expected to remain in place. Estimates for fiscal 2024 are stable, with full-year earnings expected to climb 11.38% to $6.36/share. Revenues of $8.04 billion would mark a 12.81% improvement versus last year.
ISRG Stock Performance
ISRG stock completed a powerful cup-with-handle breakout earlier this month, and today’s pullback presents a viable buying opportunity. The stock has risen more than 40% in the past year, widely outperforming the major indices. Renewed strength in the health care sector is providing a durable backing for this industry leader.
Intuitive Surgical is part of the Zacks Medical – Instruments industry group, which currently ranks in the top 48% out of more than 250 Zacks Ranked Industries. Because it is ranked in the top half of all Zacks Ranked Industries, we expect this group to outperform the market over the next 3 to 6 months.
Quantitative research studies suggest that approximately half of a stock’s price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1. It’s no secret that investing in stocks that are part of leading industry groups can give us a leg up relative to the market. By focusing on leading stocks within the top 50% of Zacks Ranked Industries, we can dramatically improve our stock-picking success.
Bottom Line
A growing adoption of minimally-invasive, robot-assisted surgeries and self-automated, home-based care is helping to drive future innovations. Increased usage of the company’s da Vinci System, improving procedure volumes, and solid recurring revenue are key catalysts.
Backed by a top industry group and impressive history of earnings beats, the future looks bright for this market leader.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Zacks Investment Research
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.