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Will Intuitive Surgical (ISRG) Surprise in Q1 Earnings?
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Intuitive Surgical Inc. (ISRG - Free Report) is scheduled to report first-quarter 2017 results after the closing bell on Apr 18. Last quarter, the company’s earnings exceeded the Zacks Consensus Estimate by 0.76%. Also, the company delivered an average beat of 11.55% in the trailing four quarters. Let’s see how things are shaping up prior to this announcement.
Factors at Play
We believe that the growing adoption of Intuitive Surgical’s da Vinci system among physicians for general surgery, oncology, urology and gynecology procedures is a key catalyst. In this regard, the venture with Dextera Surgical to initiate a joint development program on robotic staplers for da Vinci Surgical System is notable. da Vinci procedures increased approximately 15% year over year in the fourth quarter of 2016.
Moreover, rising procedural volumes outside the U.S. (particularly in Europe) fortifies the company’s market position. In 2016, approximately 753,000 surgical procedures were performed with the da Vinci Surgical System. This reflects an increase of approximately 15% from approximately 652,000 procedures performed in 2015. The growth in overall 2016 procedure volume was primarily driven by growth in U.S. general surgery procedures and worldwide urologic procedures. In fact, the integrated Table Motion product line has gained significant traction within a short span of time and is likely to boost the top line in the to-be-reported quarter.
Meanwhile, increased spending on product development and higher investments in expanding the company’s footprint in international markets are prudent moves to drive long-term growth in our view.
We note that Intuitive Surgical outperformed the Zacks Medical Instruments sub-industry in the last one year. While the stock returned 22.73%, the sub-industry gained only 2.50%.
Earnings Whispers
Our proven model does not conclusively show that Intuitive Surgical is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below.
Zacks ESP: Intuitive Surgical’s Earnings ESP is 0.00% since both the Most Accurate estimate and the Zacks Consensus Estimate stand at $3.97. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Intuitive Surgical has a Zacks Rank #3. Though a favorable Zacks Rank increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult.
Also, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are three companies you may want to consider as our proven model shows that they have the right combination of elements to post an earnings beat this quarter:
The Chemours Company (CC - Free Report) has an Earnings ESP of +4.08% and a Zacks Rank #1.
Hill-Rom Holdings, Inc. has an Earnings ESP of +1.27% and a Zacks Rank #2.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>
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Will Intuitive Surgical (ISRG) Surprise in Q1 Earnings?
Intuitive Surgical Inc. (ISRG - Free Report) is scheduled to report first-quarter 2017 results after the closing bell on Apr 18. Last quarter, the company’s earnings exceeded the Zacks Consensus Estimate by 0.76%. Also, the company delivered an average beat of 11.55% in the trailing four quarters. Let’s see how things are shaping up prior to this announcement.
Factors at Play
We believe that the growing adoption of Intuitive Surgical’s da Vinci system among physicians for general surgery, oncology, urology and gynecology procedures is a key catalyst. In this regard, the venture with Dextera Surgical to initiate a joint development program on robotic staplers for da Vinci Surgical System is notable. da Vinci procedures increased approximately 15% year over year in the fourth quarter of 2016.
Moreover, rising procedural volumes outside the U.S. (particularly in Europe) fortifies the company’s market position. In 2016, approximately 753,000 surgical procedures were performed with the da Vinci Surgical System. This reflects an increase of approximately 15% from approximately 652,000 procedures performed in 2015. The growth in overall 2016 procedure volume was primarily driven by growth in U.S. general surgery procedures and worldwide urologic procedures. In fact, the integrated Table Motion product line has gained significant traction within a short span of time and is likely to boost the top line in the to-be-reported quarter.
Meanwhile, increased spending on product development and higher investments in expanding the company’s footprint in international markets are prudent moves to drive long-term growth in our view.
Intuitive Surgical, Inc. Price and EPS Surprise
Intuitive Surgical, Inc. Price and EPS Surprise | Intuitive Surgical, Inc. Quote
We note that Intuitive Surgical outperformed the Zacks Medical Instruments sub-industry in the last one year. While the stock returned 22.73%, the sub-industry gained only 2.50%.
Earnings Whispers
Our proven model does not conclusively show that Intuitive Surgical is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below.
Zacks ESP: Intuitive Surgical’s Earnings ESP is 0.00% since both the Most Accurate estimate and the Zacks Consensus Estimate stand at $3.97. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Intuitive Surgical has a Zacks Rank #3. Though a favorable Zacks Rank increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult.
Also, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are three companies you may want to consider as our proven model shows that they have the right combination of elements to post an earnings beat this quarter:
Applied Materials, Inc. (AMAT - Free Report) has an Earnings ESP of +1.32% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Chemours Company (CC - Free Report) has an Earnings ESP of +4.08% and a Zacks Rank #1.
Hill-Rom Holdings, Inc. has an Earnings ESP of +1.27% and a Zacks Rank #2.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>