Intuitive Surgical, Inc. (NASDAQ: $ISRG) is a manufacturer of robotic surgical equipment for minimally invasive surgery. As of December 2021, 6,730 da Vinci Surgical Systems were installed worldwide.
The company plans to release its Q1 fiscal 2024 results on Thursday, April 18, after the closing bell.
What to Expect
Ahead of the earnings release, analysts forecast an EPS of $1.42 compared to $1.23 in Q123. Analysts forecast that sales will rise 10.26% in Q124 compared to the $1.70 billion reported last year.
For fiscal 2024, analysts forecast that Intuitive Surgical will report an EPS of $6.25 compared to $5.12 in fiscal 2023. On average, analysts expect revenue of $8 billion for the year compared to $7.12 billion in fiscal 2023.
In the past 12 months, the company has beaten analysts’ forecasts 100% of the time and has beaten sales estimates 75% of the time. In comparison, its overall industry beats EPS estimates 57.54% of the time and sales estimates 47.21% of the time.
Factors that Could Affect Performance
The company’s Instrument & Accessories segment is expected to have a strong performance in the first quarter driven by rising sales of da Vinci systems. However, a negative FX impact could partially offset gains from the rising demand for surgical procedures.
Additionally, the strong procedure recovery in China following the COVID-driven slump the past year will likely boost sales.
The FDA’s approval of the da Vinci 5 system in March will also likely have a huge impact on its Q1 results. On the downside, policy changes in China, high freight costs amid supply chain constraints, and rising inflation could hurt sales and increase expenses in its Q1 results.
ISRG Stock Performance
On Thursday, the shares were down 0.22% to $373.35 as of 12:27 PM EDT. ISRG shares are up 12.86% year-to-date compared to the 1.25% gain of the Medical Instruments & Supplies industry and the 6.29% gain of the SPX.
Over the past 52 weeks, the shares are up 25.81% compared to the 21.61% gain of the SPX in the same period. They are below their 50 DMA of $387.63, above the 200 DMA of $332.53, and below their 52-week high of $403.76.
The short interest currently stands at 0.97% of the float and 0.96% of the shares outstanding.
Is Intuitive Surgical A Buy Ahead of Earnings?
Stocks that are likely to beat earnings are usually a favourite of investors. Thus far, ISRG is signalling that it will beat earnings in the current quarter based on historical trends.
Recently, the stock has seen an upward revision in estimates, often a signal of an earnings beat. Most analysts update their estimates just before earnings release, including the most recent information.
Overall, 19 Wall Street analysts give the stock a moderate buy rating. They forecast a broad range for the stock, with a high of $475 and a low of $370. Their average price of $423.67 is a 13.48 upside based on the most recent price.
An upward revision is often a precursor for an earnings surprise 70% of the time. Consequently, it signals good times ahead for the stock.
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