Intuitive Surgical, Inc. ( ISRG Quick Quote ISRG - Free Report) is expected to release fourth-quarter 2019 results on Jan 23, after the closing bell. In the last reported quarter, the company delivered a positive earnings surprise of 15.9%. Further, it has an average four-quarter positive surprise of 6.4%. Let’s take a look at how things are shaping up prior to this announcement. Which Way Are Estimates Treading? Currently, the Zacks Consensus Estimate for fourth-quarter revenues is pegged at $1.23 billion, suggesting growth of 17.7% from the year-ago reported number. The consensus estimate for earnings is pegged at $3.26 per share, indicating an improvement of 10.1% from the year-ago reported figure. Instruments & Accessories: A Key Catalyst The Instruments & Accessories segment is anticipated to witness a solid fourth quarter. In fact, per the company’s preliminary announcement, the segment’s revenues are projected to improve 24% in the fourth quarter of 2019 to approximately $671 million backed by increase in da Vince procedure volume. Further, the flagship — da Vinci surgical system — has been driving revenues continuously for the segment. In fact, impact of the company’s da Vinci SP surgical system is likely to get reflected in the fourth quarter. In fact, as per the preliminary announcement, fourth-quarter worldwide da Vinci procedures are expected to increase approximately 19% from the year-ago quarter. Reflective of these, the Zacks Consensus Estimate for Instruments & Accessories’ fourth-quarter revenues is pegged at $651 million, suggesting growth of 20.8% from the year-ago reported figure. Other Factors at Play Revenues from other two segments — Systems and Services — are likely to have positively impacted the fourth quarter performance courtesy of steady progress in the imaging and reality programs. For the quarter to be reported, the Zacks Consensus Estimate for Services stands at $188 million, indicating an improvement 12.6% from the prior-year quarter reported figure. The same for Systems is pegged at $383 million, suggesting growth of 12.3% from the year-ago quarter’s reported number. In the third quarter of 2019, Intuitive Surgical launched its 45-millimeter SureForm stapler and received clearance for the same in Japan and Korea. Further, the company got the 510(k) clearance for its new Curved-Tip SureForm 45-millimeter stapler and a new gray reload designed to staple thin structures in the same timeframe. The company, therefore, continues to introduce technologies for surgical systems and strengthens product portfolio. Further, in November 2019, the company had received FDA clearance for the SynchroSeal instrument and E-100 generator. SynchroSeal is a single-use, bipolar, electrosurgical instrument created for grasping, dissection, sealing, and transection of tissue that provides enhanced versatility to the company’s da Vinci Energy portfolio. The E-100 generator is an electrosurgical generator developed to power two key instruments — Vessel Sealer Extend and SynchroSeal — on the da Vinci X and Xi Surgical Systems. The aforementioned clearances and approval are likely to have aided Intuitive Surgical’s fourth-quarter performance. Moreover, the company’s acquisition of Schölly Fiberoptic’s robotic endoscope business in July 2019 is likely to have improved da Vinci Surgical system through the addition of important aspects of da Vinci’s visualization system. Notably, the buyout is anticipated to have strengthened the company’s supply chain and enhanced manufacturing capacity for imaging products. Consequently, the positive impacts of the acquisition are likely to get reflected in the fourth-quarter results. However, cutthroat competition in the MedTech space remained a headwind and might have weighed on its margins, which have been contracting over the last couple of quarters. What Our Quantitative Model Suggests Per our proven model, a 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 the case here as you will see. You can see the complete list of today’s Zacks #1 Rank stocks here. Earnings ESP: Intuitive Surgical has an Earnings ESP of +12.63%. 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. Stocks Worth a Look Here are a few medical stocks worth considering as they have the right combination of elements to post an earnings beat this quarter. Baxter International BAX has an Earnings ESP of +1.32% and a Zacks Rank #3. Stryker Corporation SYK has an Earnings ESP of +0.60% and a Zacks Rank #3. Zimmer Biomet Holdings, Inc. ZBH has an Earnings ESP of +0.38% and a Zacks Rank #3. Biggest Tech Breakthrough in a Generation
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