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Intuitive Surgical


-17.49 (-3.22%)


Fly Intel: What to watch in Intuitive Surgical earnings report

Intuitive Surgical (ISRG) is scheduled to report results of its third fiscal quarter after the market close on October 18, with a conference call scheduled for 4:30 pm EDT. What to watch for: 1. PROCEDURAL GROWTH: Along with its second quarter report out in mid-July, Intuitive Surgical raised its fiscal year 2018 procedural growth view to 14.5%-16.5% from 12%-15%. Commenting on the announcement, Gary Guthart, President and CEO of Intuitive Surgical, said, "We are pleased with our customers' increased use of da Vinci in the second quarter and the financial results that follow. We remain dedicated to working with our customers to deliver superior programs while continuing to build on our record of innovation - including the recent clearances of our SP surgical system and 3rd generation stapling platform." 2. GROWTH PROSPECTS INTACT: Following its Q2 report, analysts were for the most part in agreement on Intuitive's growth prospects. After the company's Q2 earnings beat in July, JPMorgan analyst Tycho Peterson raised his price target for Intuitive Surgical to $575, saying the company reported "exceptionally strong" Q2 results. The company's momentum is "showing absolutely no signs of slowing," Peterson told investors in a research note after the company Q2 report. He continued to like the set-up for Intuitive Surgical shares and reiterated an Overweight rating on the name. After Intuitive's July report, Cantor Fitzgerald analyst Craig Bijou raised his price target for Intuitive Surgical to $620 from $510. Intuitive continues to justify its premium valuation, again significantly beating on all metrics, including sales and earnings, Bijou said. He noted the company posted 18% procedure growth for Q2, one of the strongest quarterly procedure growth figures year-over-year in the last five years. The analyst said he believes surgical robotics "remains at an early stage" and that Intuitive Surgical will drive adoption with its existing platforms and pipeline products. Bijou reiterated an Overweight rating on the shares. 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.

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