On The Fly: What to watch in Intuitive Surgical earnings report
Intuitive Surgical (ISRG) is scheduled to report results of its second fiscal quarter after the market close on July 19, with a conference call scheduled for 4:30 pm EDT. What to watch for 1. PROCEDURAL GROWTH: Along with its first quarter report out in mid-April, Intuitive Surgical raised the lower end of its much-watched procedural growth view for FY18 to 12%-15% from 11%-15%. The company noted that Q1 procedure growth was driven by general surgery. The robotic surgery company said expects its lead molecular agent to enter Phase 2 trial. 2. GROWTH PROSPECTS INTACT: Following its Q1 report, analysts were for the most part in agreement on Inuitive's growth prospects. After the company's earnings beat in April, RBC Capital analyst Brandon Henry raised his price target on Intuitive Surgical to $460. Henry said the momentum in the company's general surgery business continues, allowing it to continue accelerated investment on several pipeline technologies which could expand its total addressable market and retain its status as the premium player in the surgical robotics market. Morgan Stanley analyst David Lewis said Intuitive Surgical's results beat even his "bullish expectations." The analyst, who said he sees Intuitive heading into "the most catalyst rich cycle" in its history, raised his price target on the stock to $525 from $500 and kept an Overweight rating on the shares. 3. GLOBAL ROBOTIC SURGERY MARKET: According to a recent report out of BIS Research, titled "Global Minimally Invasive Surgical Systems Market- Analysis and Forecast, 2018-2025," the global minimally invasive surgical systems market is estimated to grow over $40.52B by 2025. Intuitive Medical is currently leading the surgical robotics market space, occupying approximately 70% of the market, according to the BIS study.