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Why Is Intuitive Surgical, Inc. (ISRG) Down 8.4% Since Last Earnings Report?
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A month has gone by since the last earnings report for Intuitive Surgical, Inc. (ISRG - Free Report) . Shares have lost about 8.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Intuitive Surgical, Inc. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Intuitive Surgical Q1 Earnings & Revenues Top Estimates
Intuitive Surgical, Inc. reported first-quarter 2021 adjusted earnings per share of $3.52, which beat the Zacks Consensus Estimate of $2.61 by 34.9%. Moreover, the bottom line improved 30.9% year over year.
Revenue Details
The company reported revenues of $1.29 billion, which surged 17.5% from the prior-year quarter. The top line also outpaced the Zacks Consensus Estimate by 16.2%.
Segment Details
Instruments & Accessories
Revenues at the segment amounted to $706 million, reflecting year-over-year improvement of 14%. This can be attributed to 16% growth in da Vinci procedure volume.
Systems
In the reported quarter, System revenues surged 30% year over year to $369 million. In fact, the company shipped 298 da Vinci Surgical Systems in the quarter, compared to 237 systems in the prior-year quarter.
Services
Services revenues were $217.5 million, up 9.5% from the year-ago quarter. Outside the United States, revenues totaled $444.6 million, up 39.8% on a year-over-year basis.
Outside the United States, Intuitive Surgical placed 108 systems in the first quarter compared with 55 in the prior-year quarter. Of these, 59 were in Europe, eight in Japan and 23 in China.
Margins
Adjusted gross profit in the reported quarter was $927.8 million, up 21.1% year over year. As a percentage of revenues, gross margin in the quarter was 71.8%, up 210 basis points (bps).
Adjusted operating income totaled $527.3 million, up 37.2% year over year. As a percentage of revenues, operating margin in the quarter was 40.8%, up 580 bps.
Financial Position
The company exited the first quarter with cash, cash equivalents and investments of $7.23 billion, compared with $6.87 billion in the previous quarter.
Total assets were $11.54 billion, compared with $11.17 billion sequentially.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month. The consensus estimate has shifted 18.21% due to these changes.
VGM Scores
At this time, Intuitive Surgical, Inc. has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Intuitive Surgical, Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Intuitive Surgical, Inc. (ISRG) Down 8.4% Since Last Earnings Report?
A month has gone by since the last earnings report for Intuitive Surgical, Inc. (ISRG - Free Report) . Shares have lost about 8.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Intuitive Surgical, Inc. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Intuitive Surgical Q1 Earnings & Revenues Top Estimates
Intuitive Surgical, Inc. reported first-quarter 2021 adjusted earnings per share of $3.52, which beat the Zacks Consensus Estimate of $2.61 by 34.9%. Moreover, the bottom line improved 30.9% year over year.
Revenue Details
The company reported revenues of $1.29 billion, which surged 17.5% from the prior-year quarter. The top line also outpaced the Zacks Consensus Estimate by 16.2%.
Segment Details
Instruments & Accessories
Revenues at the segment amounted to $706 million, reflecting year-over-year improvement of 14%. This can be attributed to 16% growth in da Vinci procedure volume.
Systems
In the reported quarter, System revenues surged 30% year over year to $369 million. In fact, the company shipped 298 da Vinci Surgical Systems in the quarter, compared to 237 systems in the prior-year quarter.
Services
Services revenues were $217.5 million, up 9.5% from the year-ago quarter.
Outside the United States, revenues totaled $444.6 million, up 39.8% on a year-over-year basis.
Outside the United States, Intuitive Surgical placed 108 systems in the first quarter compared with 55 in the prior-year quarter. Of these, 59 were in Europe, eight in Japan and 23 in China.
Margins
Adjusted gross profit in the reported quarter was $927.8 million, up 21.1% year over year. As a percentage of revenues, gross margin in the quarter was 71.8%, up 210 basis points (bps).
Adjusted operating income totaled $527.3 million, up 37.2% year over year. As a percentage of revenues, operating margin in the quarter was 40.8%, up 580 bps.
Financial Position
The company exited the first quarter with cash, cash equivalents and investments of $7.23 billion, compared with $6.87 billion in the previous quarter.
Total assets were $11.54 billion, compared with $11.17 billion sequentially.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month. The consensus estimate has shifted 18.21% due to these changes.
VGM Scores
At this time, Intuitive Surgical, Inc. has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Intuitive Surgical, Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.