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Intuitive Surgical (ISRG) Loses 0.9% Ahead of Earnings: What To Expect
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Shares of Intuitive Surgical (ISRG - Free Report) fell about 0.9% in morning trading Thursday, just hours before the innovative medical equipment maker is set to release its latest quarterly earnings report.
U.S. stocks were down in general, but ISRG trailed broader markets as investors displayed some hesitation in the run-up to today’s earnings announcement. It is possible that Wall Street is concerned sales of the company’s da Vinci Surgical System might slow—or perhaps, some are just choosing to take profits and sit on the sidelines after a remarkable year of gains for the stock.
Nevertheless, Intuitive is an interesting company to watch as it continues to push the boundaries of robotics in the healthcare field. But what should we expect from its soon-to-be-reported quarter? Let’s take a closer look.
Intuitive Surgical, Inc. Price, Consensus and EPS Surprise
Intuitive Surgical will release its Q2 fiscal 2018 results shortly after the market closes today. Here’s what analysts are expecting, according to our Zacks Consensus Estimates:
Earnings: Intuitive is projected to report adjusted earnings of $2.48 per share, which would represent growth of about 25% from the year-ago period.
Estimate Revisions: The medical equipment company has seen one positive revision to this quarter’s earnings estimates within the past 30 days. The Zacks Consensus Estimate now sits a penny higher than where it did about a month ago.
Revenue: Consensus estimates have Intuitive’s Q2 revenue pegged at $869.6 million. This would mark growth of 15% year over year.
Valuation
ISRG is trading at about 48x forward 12-month earnings heading into today’s report. This is a steep premium compared to the “Medical Instruments” industry’s average of 33x, but this stretched valuation is in line with what we have come to expect from the stock.
Over the past year, ISRG has traded as high as 59x and as low as 42x. Its 52-week median earnings multiple is 51x.
Bottom Line
Intuitive shares are up more than 63% over the past year, so it makes sense that some investors chose to cash out and avoid the risk of an earnings release. However, earnings estimates have trended higher, and EPS growth is expected to be solid, so there could be some room for the stock to run higher.
Want more market analysis from this author? Make sure to follow @Ryan_McQueeneyon Twitter!
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Intuitive Surgical (ISRG) Loses 0.9% Ahead of Earnings: What To Expect
Shares of Intuitive Surgical (ISRG - Free Report) fell about 0.9% in morning trading Thursday, just hours before the innovative medical equipment maker is set to release its latest quarterly earnings report.
U.S. stocks were down in general, but ISRG trailed broader markets as investors displayed some hesitation in the run-up to today’s earnings announcement. It is possible that Wall Street is concerned sales of the company’s da Vinci Surgical System might slow—or perhaps, some are just choosing to take profits and sit on the sidelines after a remarkable year of gains for the stock.
Nevertheless, Intuitive is an interesting company to watch as it continues to push the boundaries of robotics in the healthcare field. But what should we expect from its soon-to-be-reported quarter? Let’s take a closer look.
Intuitive Surgical, Inc. Price, Consensus and EPS Surprise
Intuitive Surgical, Inc. Price, Consensus and EPS Surprise | Intuitive Surgical, Inc. Quote
Earnings Outlook
Intuitive Surgical will release its Q2 fiscal 2018 results shortly after the market closes today. Here’s what analysts are expecting, according to our Zacks Consensus Estimates:
Earnings: Intuitive is projected to report adjusted earnings of $2.48 per share, which would represent growth of about 25% from the year-ago period.
Estimate Revisions: The medical equipment company has seen one positive revision to this quarter’s earnings estimates within the past 30 days. The Zacks Consensus Estimate now sits a penny higher than where it did about a month ago.
Revenue: Consensus estimates have Intuitive’s Q2 revenue pegged at $869.6 million. This would mark growth of 15% year over year.
Valuation
ISRG is trading at about 48x forward 12-month earnings heading into today’s report. This is a steep premium compared to the “Medical Instruments” industry’s average of 33x, but this stretched valuation is in line with what we have come to expect from the stock.
Over the past year, ISRG has traded as high as 59x and as low as 42x. Its 52-week median earnings multiple is 51x.
Bottom Line
Intuitive shares are up more than 63% over the past year, so it makes sense that some investors chose to cash out and avoid the risk of an earnings release. However, earnings estimates have trended higher, and EPS growth is expected to be solid, so there could be some room for the stock to run higher.
Want more market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>