Intuitive Surgical (NASDAQ: ISRG) will report its Q3 2024 outcomes on Thursday, October 17. We count on the corporate’s revenues to return in at $2 billion and adjusted earnings to be $1.60 per share, reflecting a top-line above, however earnings barely under the consensus estimate. The corporate ought to proceed to profit from an general development in process quantity and extra placements of its new da Vinci 5 surgical platform. See our interactive dashboard evaluation on Intuitive Surgical FY 2024Q3 Earnings Preview for extra particulars on the corporate’s revenues and earnings for the quarter.
What Developments Will Drive Intuitive Surgical’s Q3 Outcomes?
Intuitive Surgical benefited from inserting extra methods and da Vinci process quantity development. The corporate continues to broaden its put in base, which leads to the expansion of recurring revenues, corresponding to consumables. Intuitive Surgical has projected world da Vinci process quantity development to be 15.5%-17% in 2024. Not solely can we count on the next put in base driving the corporate’s consumables and companies income, its working margin can be anticipated to see slight development, bolstering its backside line.
How Did Intuitive Surgical Carry out In The Earlier Quarter?
Intuitive Surgical’s revenue of $2.0 billion mirrored a 6% y-o-y development pushed by a 17% rise in worldwide da Vinci process quantity. The corporate positioned 341 da Vinci methods in the course of the quarter, together with 70 da Vinci 5 methods, that have been launched within the U.S. earlier this yr. Intuitive Surgical’s whole put in base elevated 14% y-o-y to 9,203 methods in Q2. The corporate’s working margin expanded round 340 bps to twenty-eight.2% in Q2. The corporate’s backside line stood at $1.78 on an adjusted foundation, reflecting a 25% enhance over the prior-year quarter and effectively above our estimate of $1.55.
What Does This Imply For ISRG Inventory?
ISRG has had yr to date, with a forty five% appreciation, 2x greater than the broader markets. Nonetheless, ISRG inventory seems to be like it’s appropriately priced. We estimate Intuitive Surgical’s Valuation to be $462 per share, barely under the present market value of $480. Our forecast displays a 20x P/S a number of, aligning with the inventory’s common P/S ratio during the last 4 years.
a barely long term, the rise in ISRG inventory has been removed from constant, with annual returns being extra unstable than the S&P 500. In distinction, the Trefis Excessive High quality (HQ) Portfolio, with a group of 30 shares, is far much less unstable. And it has outperformed the S&P 500 annually over the identical interval. Why is that? As a gaggle, HQ Portfolio shares supplied higher returns with much less threat versus the benchmark index; much less of a roller-coaster experience, as evident in HQ Portfolio efficiency metrics.
Whereas ISRG inventory seems to be like it’s totally valued, it’s useful to see how Intuitive Surgical’s Friends fare on metrics that matter. You will see that different worthwhile comparisons for corporations throughout industries at Peer Comparisons.
| Returns | Oct 2024 MTD [1] |
2024 YTD [1] |
2017-24 Whole [2] |
| ISRG Return | -1% | 45% | 593% |
| S&P 500 Return | 1% | 22% | 160% |
| Trefis Strengthened Worth Portfolio | 3% | 18% | 786% |
[1] Returns as of 10/14/2024
[2] Cumulative whole returns because the finish of 2016
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The views and opinions expressed herein are the views and opinions of the creator and don’t essentially mirror these of Nasdaq, Inc.
