Intuitive Surgical Prepares for Q4 Earnings Release Amid Strong Stock Performance
Intuitive Surgical, Inc. (ISRG), based in Sunnyvale, California, specializes in creating innovative medical solutions that improve access to minimally invasive care. With a market cap of $190.7 billion, the company is recognized for its robotic-assisted da Vinci Surgical System, which revolutionizes minimally invasive surgery, as well as its Ion endoluminal system designed for biopsies. Investors are eagerly awaiting ISRG’s fiscal fourth-quarter earnings announcement, scheduled for Thursday, January 23.
Analysts Predict Strong Earnings Ahead
In anticipation of the upcoming earnings report, analysts forecast that ISRG will achieve a profit of $1.40 per share on a diluted basis. This represents an 18.6% increase compared to last year’s $1.18 per share. Notably, the company has successfully beat or matched Wall Street’s earnings per share (EPS) estimates for four consecutive quarters.
For the entire fiscal year, the expectations are high, with analysts predicting an EPS of $5.45. This figure marks a 34.6% rise from the $4.05 reported in fiscal 2023. Looking ahead, EPS is anticipated to increase by 15.4% to reach $6.29 in fiscal 2025.
ISRG Stock Outpaces Market Indices
In the past year, ISRG’s stock has outperformed the S&P 500, which gained 27.2%. ISRG shares surged by 68.2% in the same timeframe, demonstrating significant strength compared to the Health Care Select Sector SPDR Fund (XLV), which saw modest losses.
Growth Fueled by Innovation and Technology
ISRG’s impressive stock performance is primarily driven by the demand for its advanced fifth-generation da Vinci system. This system boasts innovations like Force Feedback technology, contributing to reduced patient trauma and quicker recovery times. Moreover, favorable market conditions and advancements in artificial intelligence, including ISRG’s AI-powered simulator SimNow and enhanced operating room scheduling consulting services, have further improved surgical outcomes and strengthened the company’s market position.
On October 17, ISRG announced its Q3 results, which led to a 10% increase in shares during the subsequent trading session. The company reported an adjusted EPS of $1.84, exceeding Wall Street’s expectations of $1.64. Additionally, ISRG’s revenue reached $2.04 billion, surpassing forecasts of $2.01 billion.
Wall Street Analysts Maintain a Positive Outlook
The consensus among analysts regarding ISRG stock is moderately bullish, with an overall “Moderate Buy” rating. Out of 26 analysts monitoring the stock, 17 recommend a “Strong Buy,” two propose a “Moderate Buy,” and seven suggest a “Hold.” The average price target set by analysts stands at $576.33, indicating a potential upside of 6.3% from current levels.
On the date of publication,
Neha Panjwani
did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy
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