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Intuitive Surgical (ISRG) to Post Q1 Earnings: What's in Store?
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Intuitive Surgical, Inc. (ISRG - Free Report) is scheduled to release first-quarter 2023 results on Apr 18, after the closing bell.
The stock has gained 0.4% so far this year compared with the industry’s 2.2% growth. The S&P 500 Index has gained 7% in the same time frame.
In the last reported quarter, ISRG delivered a negative earnings surprise of 2.38%. Its earnings beat estimates in two of the trailing four quarters and missed the same in the other two, the average surprise being 2.42%.
Image Source: Zacks Investment Research
Q1 Estimates
Currently, the Zacks Consensus Estimate for ISRG’s first-quarter revenues is pegged at $1.58 billion, indicating a 6.5% improvement from the year-ago period. The consensus mark for earnings is $1.18 per share, indicating a 4.4% increase from the prior-year quarter.
Factors to Note
The Instruments & Accessories segment is likely to have witnessed a strong first quarter on the back of growing da Vinci procedure volume in the past two quarters. However, unfavorable currency movements and a resurgence in COVID-19 infections are expected to have partially offset gains from recovering demand in procedures. These effects are likely to be reflected in the first-quarter results.
The Zacks Consensus Estimate for Instruments & Accessories revenues is $891 million, indicating a 10% increase 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). The potential downside can also be attributed to continued supply chain challenges impacting 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 systemin the United States is pegged at 146 units.
However, Intuitive Surgical’s da Vinci capital placements are likely to have benefited from rising demand outside the United States. The company placed 188 systems in the fourth quarter of 2022 compared with 150 in the prior-year quarter in ex-U.S. markets. The trend is likely to have continued in the first quarter of 2023.
ISRG expects the single port platform’s growth to be 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 134 units, indicating a 7.2% year-over-year growth.
During the fourth quarter, Intuitive Surgical’s digital product, Intuitive Hub, exhibited a year-over-year increase. The company is in discussions with the FDA on how to best characterize some of its core artificial intelligence technology. It will continue to bring its flexible endoscopy platform, Ion, to scale and boost its capacity, quality and cost improvementswhile seeking to expand access to new markets. These developments might have contributed to the company’s first-quarter 2023 performance.
Intuitive Surgical’s new platforms made advancements in terms of commercialization, innovation and clinical programs. This trend is likely to have continued in the first quarter as well.
However, higher logistics costs amid supply-chain challenges and rising inflationary pressure are likely to have increased expenses, thereby hurting margins in the to-be-reported quarter.
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. That is not the case here as you will see below.
Earnings ESP: Intuitive Surgical has an Earnings ESP of -0.09%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.
Masimo (MASI - Free Report) has an Earnings ESP of +0.72% and a Zacks Rank of 1.
The stock has gained 32.7% so far this year. MASI’s earnings beat estimates in the last reported quarter. Masimo has a four-quarter earnings surprise of 9.02%, on average.
McKesson (MCK - Free Report) has an Earnings ESP of +1.22% and a Zacks Rank of 3.
The stock has lost 2.9% so far this year. MCK’s earnings beat estimates in the last reported quarter. McKesson has a four-quarter earnings surprise of 3.42%, on average.
Integer Holdings (ITGR - Free Report) has an Earnings ESP of +1.22% and a Zacks Rank of 3.
The stock has gained 15.9% year to date. ITGR’s earnings beat estimates in the last reported quarter. Integer Holdings has a negative four-quarter earnings surprise of 2.94%, on average.
Image: Bigstock
Intuitive Surgical (ISRG) to Post Q1 Earnings: What's in Store?
Intuitive Surgical, Inc. (ISRG - Free Report) is scheduled to release first-quarter 2023 results on Apr 18, after the closing bell.
The stock has gained 0.4% so far this year compared with the industry’s 2.2% growth. The S&P 500 Index has gained 7% in the same time frame.
In the last reported quarter, ISRG delivered a negative earnings surprise of 2.38%. Its earnings beat estimates in two of the trailing four quarters and missed the same in the other two, the average surprise being 2.42%.
Image Source: Zacks Investment Research
Q1 Estimates
Currently, the Zacks Consensus Estimate for ISRG’s first-quarter revenues is pegged at $1.58 billion, indicating a 6.5% improvement from the year-ago period. The consensus mark for earnings is $1.18 per share, indicating a 4.4% increase from the prior-year quarter.
Factors to Note
The Instruments & Accessories segment is likely to have witnessed a strong first quarter on the back of growing da Vinci procedure volume in the past two quarters. However, unfavorable currency movements and a resurgence in COVID-19 infections are expected to have partially offset gains from recovering demand in procedures. These effects are likely to be reflected in the first-quarter results.
The Zacks Consensus Estimate for Instruments & Accessories revenues is $891 million, indicating a 10% increase 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). The potential downside can also be attributed to continued supply chain challenges impacting 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 systemin the United States is pegged at 146 units.
However, Intuitive Surgical’s da Vinci capital placements are likely to have benefited from rising demand outside the United States. The company placed 188 systems in the fourth quarter of 2022 compared with 150 in the prior-year quarter in ex-U.S. markets. The trend is likely to have continued in the first quarter of 2023.
ISRG expects the single port platform’s growth to be 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 134 units, indicating a 7.2% year-over-year growth.
During the fourth quarter, Intuitive Surgical’s digital product, Intuitive Hub, exhibited a year-over-year increase. The company is in discussions with the FDA on how to best characterize some of its core artificial intelligence technology. It will continue to bring its flexible endoscopy platform, Ion, to scale and boost its capacity, quality and cost improvementswhile seeking to expand access to new markets. These developments might have contributed to the company’s first-quarter 2023 performance.
Intuitive Surgical’s new platforms made advancements in terms of commercialization, innovation and clinical programs. This trend is likely to have continued in the first quarter as well.
However, higher logistics costs amid supply-chain challenges and rising inflationary pressure are likely to have increased expenses, thereby hurting margins in the to-be-reported quarter.
Intuitive Surgical, Inc. Price and Consensus
Intuitive Surgical, Inc. price-consensus-chart | Intuitive Surgical, Inc. Quote
Earnings Beat Likely
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. That is not the case here as you will see below.
Earnings ESP: Intuitive Surgical has an Earnings ESP of -0.09%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Intuitive Surgical carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
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.
Masimo (MASI - Free Report) has an Earnings ESP of +0.72% and a Zacks Rank of 1.
The stock has gained 32.7% so far this year. MASI’s earnings beat estimates in the last reported quarter. Masimo has a four-quarter earnings surprise of 9.02%, on average.
McKesson (MCK - Free Report) has an Earnings ESP of +1.22% and a Zacks Rank of 3.
The stock has lost 2.9% so far this year. MCK’s earnings beat estimates in the last reported quarter. McKesson has a four-quarter earnings surprise of 3.42%, on average.
Integer Holdings (ITGR - Free Report) has an Earnings ESP of +1.22% and a Zacks Rank of 3.
The stock has gained 15.9% year to date. ITGR’s earnings beat estimates in the last reported quarter. Integer Holdings has a negative four-quarter earnings surprise of 2.94%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.