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Is a Beat Likely for Intuitive Surgical (ISRG) in Q3 Earnings?
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Intuitive Surgical, Inc. (ISRG - Free Report) is scheduled to release third-quarter 2022 results on Oct 18, after the closing bell.
The company’s stock has declined 49.1% so far this year compared with a decrease of 38.2% for the industry.
In the last reported quarter, the company delivered a negative earnings surprise of 1.72%. Its earnings beat estimates in two of the trailing four quarters, missed once and came in line once, the average surprise being 1.36%.
Image Source: Zacks Investment Research
Q3 Estimates
Currently, the Zacks Consensus Estimate for third-quarter revenues is pegged at $1.52 billion, suggesting an improvement of 8.6% from the year-ago reported figure. The consensus mark for earnings stands at $1.10 per share, indicating a decline of 7.7% from the prior-year quarter.
Factors to Note
The Instruments & Accessories segment is likely to have witnessed a strong third quarter on the back of growth in da Vinci procedure volume as seen in the past two quarters. However, unfavorable currency movements and a resurgence in COVID-19 infections are likely to partially offset gains due to recovering demand in procedures. These effects are likely to be reflected in the third-quarter results. The Zacks Consensus Estimate for Instruments & Accessories segment revenues stands at $873 million, suggesting growth of 13.1% year over year.
Intuitive Surgical’s da Vinci capital placements are likely to have been on the lower side due to lesser trade-in of systems (majority of U.S. customers have upgraded to newer generation systems), continued supply chain challenges impacting the availability of semiconductor components and growing capital spending pressure on hospitals amid rising inflationary pressure. The Zacks Consensus Estimate for sales of the da Vinci system in the United States is pegged at 177 units, suggesting 4.1% year-over-year growth.
However, the company’s da Vinci capital placements have been benefiting from rising demand outside the United States. Intuitive Surgical placed 129 systems in the second quarter compared with 115 in the prior-year quarter in ex-U.S. markets. The trend is likely to have continued in the third quarter. The company expects the growth of the single port (SP) platform to have been driven by additional clinical indications and clearances in markets beyond the United States and Korea. The Zacks Consensus Estimate for the sales of the da Vinci system outside the United States is 127 units, suggesting 28.3% year-over-year growth.
During the second quarter, the use of Intuitive Surgical’s digital product, Intuitive Hub, exhibited strong growth year over year. The company is in discussions with the FDA on how best to characterize some of its core artificial intelligence technology. It will continue to bring its flexible endoscopy platform Ion to scale and boost capacity, quality and cost improvements while seeking to expand access to new markets. These developments might have contributed to Intuitive Surgical’s third-quarter performance.
ISRG’s new platforms made advancements in commercialization, innovation and clinical programs. This trend is likely to have continued in the third quarter as well. However, higher logistics costs during the reported quarter amid supply-chain challenges and rising inflationary pressure are likely to have driven expenses higher, hurting margins.
Our proven model predicts an earnings beat for Intuitive Surgical this time around. 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. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate ($1.11 per share) and the Zacks Consensus Estimate ($1.10 per share), is +0.61%.
Here are some medical stocks worth considering as these also have the right combination of elements to post an earnings beat this quarter.
DexCom (DXCM - Free Report) has an Earnings ESP of +7.00% and a Zacks Rank of 1.
DexCom’s stock has declined 27.5% so far this year. DXCM missed earnings estimates in the last reported quarter. DexCom has a four-quarter negative earnings surprise of 3.35%, on average.
McKesson (MCK - Free Report) has an Earnings ESP of +0.27% and a Zacks Rank of 2.
McKesson’s stock has gained 41.9% so far this year. MCK beat earnings estimates in the last reported quarter. McKesson has a four-quarter earnings surprise of 13.00%, on average.
AmerisourceBergen has an Earnings ESP of +0.61% and a Zacks Rank of 3.
AmerisourceBergen’s stock has gained 5.8% so far this year. ABC topped earnings estimates in the last reported quarter. AmerisourceBergen has a four-quarter earnings surprise of 2.63%, on average.
Image: Shutterstock
Is a Beat Likely for Intuitive Surgical (ISRG) in Q3 Earnings?
Intuitive Surgical, Inc. (ISRG - Free Report) is scheduled to release third-quarter 2022 results on Oct 18, after the closing bell.
The company’s stock has declined 49.1% so far this year compared with a decrease of 38.2% for the industry.
In the last reported quarter, the company delivered a negative earnings surprise of 1.72%. Its earnings beat estimates in two of the trailing four quarters, missed once and came in line once, the average surprise being 1.36%.
Image Source: Zacks Investment Research
Q3 Estimates
Currently, the Zacks Consensus Estimate for third-quarter revenues is pegged at $1.52 billion, suggesting an improvement of 8.6% from the year-ago reported figure. The consensus mark for earnings stands at $1.10 per share, indicating a decline of 7.7% from the prior-year quarter.
Factors to Note
The Instruments & Accessories segment is likely to have witnessed a strong third quarter on the back of growth in da Vinci procedure volume as seen in the past two quarters. However, unfavorable currency movements and a resurgence in COVID-19 infections are likely to partially offset gains due to recovering demand in procedures. These effects are likely to be reflected in the third-quarter results. The Zacks Consensus Estimate for Instruments & Accessories segment revenues stands at $873 million, suggesting growth of 13.1% year over year.
Intuitive Surgical’s da Vinci capital placements are likely to have been on the lower side due to lesser trade-in of systems (majority of U.S. customers have upgraded to newer generation systems), continued supply chain challenges impacting the availability of semiconductor components and growing capital spending pressure on hospitals amid rising inflationary pressure. The Zacks Consensus Estimate for sales of the da Vinci system in the United States is pegged at 177 units, suggesting 4.1% year-over-year growth.
However, the company’s da Vinci capital placements have been benefiting from rising demand outside the United States. Intuitive Surgical placed 129 systems in the second quarter compared with 115 in the prior-year quarter in ex-U.S. markets. The trend is likely to have continued in the third quarter. The company expects the growth of the single port (SP) platform to have been driven by additional clinical indications and clearances in markets beyond the United States and Korea. The Zacks Consensus Estimate for the sales of the da Vinci system outside the United States is 127 units, suggesting 28.3% year-over-year growth.
During the second quarter, the use of Intuitive Surgical’s digital product, Intuitive Hub, exhibited strong growth year over year. The company is in discussions with the FDA on how best to characterize some of its core artificial intelligence technology. It will continue to bring its flexible endoscopy platform Ion to scale and boost capacity, quality and cost improvements while seeking to expand access to new markets. These developments might have contributed to Intuitive Surgical’s third-quarter performance.
ISRG’s new platforms made advancements in commercialization, innovation and clinical programs. This trend is likely to have continued in the third quarter as well. However, higher logistics costs during the reported quarter amid supply-chain challenges and rising inflationary pressure are likely to have driven expenses higher, hurting margins.
Intuitive Surgical, Inc. Price and Consensus
Intuitive Surgical, Inc. price-consensus-chart | Intuitive Surgical, Inc. Quote
Earnings Beat Likely
Our proven model predicts an earnings beat for Intuitive Surgical this time around. 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. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate ($1.11 per share) and the Zacks Consensus Estimate ($1.10 per share), is +0.61%.
Zacks Rank: Intuitive Surgical carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks Worth a Look
Here are some medical stocks worth considering as these also have the right combination of elements to post an earnings beat this quarter.
DexCom (DXCM - Free Report) has an Earnings ESP of +7.00% and a Zacks Rank of 1.
DexCom’s stock has declined 27.5% so far this year. DXCM missed earnings estimates in the last reported quarter. DexCom has a four-quarter negative earnings surprise of 3.35%, on average.
McKesson (MCK - Free Report) has an Earnings ESP of +0.27% and a Zacks Rank of 2.
McKesson’s stock has gained 41.9% so far this year. MCK beat earnings estimates in the last reported quarter. McKesson has a four-quarter earnings surprise of 13.00%, on average.
AmerisourceBergen has an Earnings ESP of +0.61% and a Zacks Rank of 3.
AmerisourceBergen’s stock has gained 5.8% so far this year. ABC topped earnings estimates in the last reported quarter. AmerisourceBergen has a four-quarter earnings surprise of 2.63%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.