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Intuitive Surgical, Inc. (ISRG), headquartered in Sunnyvale, California, develops, manufactures, and markets innovative solutions aimed at enhancing the quality and accessibility to minimal invasive care. Valued at $190.7 billion by market cap, the company offers robot-assisted, the da Vinci Surgical System enabling minimally-invasive surgery, and the Ion endoluminal system, designed for biopsies. The leading medical technology company is expected to announce its fiscal fourth-quarter earnings for 2024 on Thursday, Jan. 23.
Ahead of the event, analysts expect ISRG to report a profit of $1.40 per share on a diluted basis, up 18.6% from $1.18 per share in the year-ago quarter. The company beat or matched Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect ISRG to report EPS of $5.45, up 34.6% from $4.05 in fiscal 2023. Its EPS is expected to rise 15.4% year over year to $6.29 in fiscal 2025.
ISRG stock has outperformed the S&P 500’s ($SPX) 27.2% gains over the past 52 weeks, with shares up 68.2% during this period. Similarly, it outperformed the Health Care Select Sector SPDR Fund’s (XLV)marginal losses over the same time frame.
ISRG’s strong performance is driven by the growth and demand of its fifth-generation da Vinci system, featuring innovations like Force Feedback technology that leads to less trauma and quicker recovery. Additionally, favorable market conditions and the integration of AI and machine learning, like its AI-powered simulator SimNow and consulting services for optimization of operating room scheduling have improved surgical outcomes, bolstering its success.
On Oct. 17, ISRG reported its Q3 results and its shares closed up by 10% in the following trading session. Its adjusted EPS of $1.84 surpassed Wall Street expectations of $1.64. The company’s revenue was $2.04 billion, beating Wall Street forecasts of $2.01 billion.
Analysts’ consensus opinion on ISRG stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 26 analysts covering the stock, 17 advise a “Strong Buy” rating, two suggest a “Moderate Buy,” and seven give a “Hold.” ISRG's average analyst price target is $576.33, indicating a potential upside of 6.3% from the current levels.
