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What's in Store for Intuitive Surgical's (ISRG) Q1 Earnings?

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Intuitive Surgical, Inc. (ISRG - Free Report) is scheduled to release first-quarter 2021 results on Apr 20, after the closing bell.

In the last reported quarter, the company delivered an earnings surprise of 15.5%. Its earnings beat estimates in each of the trailing four quarters, the average surprise being 71.6%.

Q1 Estimates

Currently, the Zacks Consensus Estimate for first-quarter revenues is pegged at $1.11 billion, suggesting an improvement of 1.1% from the year-ago reported figure. The consensus mark for earnings stands at $2.60 per share, indicating a decline of 3.4% from the prior-year quarter.

Factors to Note

The Instruments & Accessories segment is likely to have witnessed a strong first-quarter driven by growth in da Vinci procedure volume and stocking orders related to the company’s launch of Extended Use Instruments. Notably, the Zacks Consensus Estimate for the same is pegged at $643 million, suggesting growth of 4% on a year-over-year basis.

In fourth-quarter 2020 and for the full year 2020, da Vinci procedures grew 6% and 1% globally, respectively, resulting in about 1.25 million procedures in 2020 despite the COVID-19 pandemic induced challenging environment.  

Moreover, Intuitive Surgical placed 5,989 da Vinci surgical systems in the fourth quarter, with the installed base growing 7% year over year. Consequently, the momentum is likely to have continued in the first quarter.

Intuitive Surgical, Inc. Price and EPS Surprise

Intuitive Surgical, Inc. Price and EPS Surprise

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

However, it is important to mention here that the resurgence in cases might put pressure on the procedure volume and system placement disruption may increase, which in turn is likely to weigh on the company’s first-quarter performance.

Nonetheless, Intuitive Surgical is likely to have witnessed improvement with respect to international revenues in the to-be-reported quarter courtesy of robust procedure growth in Asia.

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

Per the fourth-quarter 2020 earnings call, the company is making substantial progress when it comes to acceleration of many elements of its ecosystem, comprising advanced instruments, strengthening its imaging and informatics programs (including its augmented reality program, Iris) and expanding launches of its new platforms.

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

What Our Quantitative Model Suggests

Per our proven model, 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 -2.69%. 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.

Thermo Fisher Scientific Inc. (TMO - Free Report) has an Earnings ESP of +0.10% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stryker Corporation (SYK - Free Report) has an Earnings ESP of +5.53% and a Zacks Rank of 3.

Zimmer Biomet Holdings, Inc. (ZBH - Free Report) has an Earnings ESP of +1.30% and a Zacks Rank of 3.

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