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Intuitive Surgical (ISRG - Free Report) recently announced preliminary revenues for the fourth quarter and full-year 2022. The preliminary results drove down the shares of the company by 4.2% on Jan 11.
Per the preliminary report, fourth-quarter 2022 worldwide revenues are likely to be $1.66 billion, suggesting an increase of 7% year over year on a reported basis. The preliminary revenues were in line with the Zacks Consensus Estimates.
The company’s instruments and accessories revenues are likely to be approximately $941 million in the fourth quarter, up 12% from the prior-year period. The da Vinci procedures increased 18% year over year.
The instruments and accessories revenues were driven by higher procedure volume, which was partially offset by customer buying patterns and foreign currency impacts. Procedure volume was driven by growth in U.S. general surgery and cancer procedures in ex-U.S. markets. However, procedure volume was hurt in China due to resurgence of COVID-19 in the country. The company expects adverse impact of COVID-19 on procedure volumes to continue in 2023.
Preliminary systems revenue for the fourth quarter of 2022 is likely to be approximately $451 million, down 4% year over year.This compares to our projection of fourth quarter revenues of $460.8 million, representing a decline of 1.9%.
The company placed 369 da Vinci Surgical systems in the fourth quarter of 2022, down from 385 systems in the year-ago period. Among the system placements during the fourth quarter, 153 were placed under operating lease and usage-based arrangements.
Per Intuitive Surgical, its full-year worldwide revenues are likely to be $6.22 billion, reflecting an increase of 9% over comparable 2021 figures on a reported basis. The Zacks Consensus Estimate of $6.24 million lies above the preliminary figure.
The instruments and accessories revenue for the full year is expected to be $3.52 billion, reflecting a growth of 13% year over year. Systems revenue declined 1% to $1.68 billion as the company placed fewer systems during 2022 compared to 2021.
A Brief Q4 Analysis
Intuitive Surgical’s procedure volumes have increased in the past few quarter and the trend also continued into the fourth quarter. The company’s procedure volumes were primarily driven by general surgery and cancer procedures.
However, COVID-19 continues to hamper demand in countries where it is still prevailing. The uncertainty on COVID-19 continues to linger and may continue to adversely impact the consumer demand.
Although revenues from procedures make up for the majority of the Intuitive Surgical’s revenue, the decline in system placement is worrying. System placements were down 6.2% in 2022 compared to 2021. Lower system revenues are impeding the top-line growth for the company.
Price Performance
Shares of the company have lost 15% between Oct 1, 2022 and Dec 31, 2022 against the industry’s 14.1% rise and the S&P 500’s 6.3% growth.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Currently, Intuitive Surgical carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Merit Medical Systems, Inc. (MMSI - Free Report) .
AMN Healthcare, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 3.3%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 10.9%.
AMN Healthcarehas lost 2.9% against the industry’s 4.9% rise between Oct 1, 2022 and Dec 31, 2022.
Cardinal Health, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11.7%. CAH’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average beat being 3%.
Cardinal Health has gained 15.3% compared with the industry’s 12.5% rise between Oct 1, 2022 and Dec 31, 2022.
Merit Medical, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average beat being 25.4%.
Merit Medicalhas gained 24.9% compared with the industry’s 12.5% rise between Oct 1, 2022 and Dec 31, 2022.
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Intuitive Surgical (ISRG) Reports Mixed Preliminary Q4 Revenues
Intuitive Surgical (ISRG - Free Report) recently announced preliminary revenues for the fourth quarter and full-year 2022. The preliminary results drove down the shares of the company by 4.2% on Jan 11.
The company is scheduled to release its fourth-quarter results on Jan 24, 2023.
Per the preliminary report, fourth-quarter 2022 worldwide revenues are likely to be $1.66 billion, suggesting an increase of 7% year over year on a reported basis. The preliminary revenues were in line with the Zacks Consensus Estimates.
The company’s instruments and accessories revenues are likely to be approximately $941 million in the fourth quarter, up 12% from the prior-year period. The da Vinci procedures increased 18% year over year.
The instruments and accessories revenues were driven by higher procedure volume, which was partially offset by customer buying patterns and foreign currency impacts. Procedure volume was driven by growth in U.S. general surgery and cancer procedures in ex-U.S. markets. However, procedure volume was hurt in China due to resurgence of COVID-19 in the country. The company expects adverse impact of COVID-19 on procedure volumes to continue in 2023.
Preliminary systems revenue for the fourth quarter of 2022 is likely to be approximately $451 million, down 4% year over year.This compares to our projection of fourth quarter revenues of $460.8 million, representing a decline of 1.9%.
The company placed 369 da Vinci Surgical systems in the fourth quarter of 2022, down from 385 systems in the year-ago period. Among the system placements during the fourth quarter, 153 were placed under operating lease and usage-based arrangements.
Intuitive Surgical, Inc. Price
Intuitive Surgical, Inc. price | Intuitive Surgical, Inc. Quote
Full-Year Prelim Results
Per Intuitive Surgical, its full-year worldwide revenues are likely to be $6.22 billion, reflecting an increase of 9% over comparable 2021 figures on a reported basis. The Zacks Consensus Estimate of $6.24 million lies above the preliminary figure.
The instruments and accessories revenue for the full year is expected to be $3.52 billion, reflecting a growth of 13% year over year. Systems revenue declined 1% to $1.68 billion as the company placed fewer systems during 2022 compared to 2021.
A Brief Q4 Analysis
Intuitive Surgical’s procedure volumes have increased in the past few quarter and the trend also continued into the fourth quarter. The company’s procedure volumes were primarily driven by general surgery and cancer procedures.
However, COVID-19 continues to hamper demand in countries where it is still prevailing. The uncertainty on COVID-19 continues to linger and may continue to adversely impact the consumer demand.
Although revenues from procedures make up for the majority of the Intuitive Surgical’s revenue, the decline in system placement is worrying. System placements were down 6.2% in 2022 compared to 2021. Lower system revenues are impeding the top-line growth for the company.
Price Performance
Shares of the company have lost 15% between Oct 1, 2022 and Dec 31, 2022 against the industry’s 14.1% rise and the S&P 500’s 6.3% growth.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Currently, Intuitive Surgical carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Merit Medical Systems, Inc. (MMSI - Free Report) .
AMN Healthcare, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 3.3%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 10.9%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMN Healthcarehas lost 2.9% against the industry’s 4.9% rise between Oct 1, 2022 and Dec 31, 2022.
Cardinal Health, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11.7%. CAH’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average beat being 3%.
Cardinal Health has gained 15.3% compared with the industry’s 12.5% rise between Oct 1, 2022 and Dec 31, 2022.
Merit Medical, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average beat being 25.4%.
Merit Medicalhas gained 24.9% compared with the industry’s 12.5% rise between Oct 1, 2022 and Dec 31, 2022.