A month has gone by since the last earnings report for Intuitive Surgical, Inc. (ISRG Quick QuoteISRG - Free Report) . Shares have added about 6.4% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Intuitive Surgical, Inc. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Intuitive Surgical Q3 Earnings Match Estimates, Up Y/Y

Intuitive Surgical, Inc. reported third-quarter 2021 adjusted earnings per share of $1.19, in line with the Zacks Consensus Estimate. The bottom line improved 29.3% from the year-ago quarter.

GAAP earnings per share in the quarter was $1.04, compared with the year-ago quarter’s figure of 87 cents.

Revenue Details

The company reported revenues of $1.40 billion, which surged 30.2% from the prior-year quarter. The top line outpaced the Zacks Consensus Estimate by 0.7%.

Segment Details

Instruments & Accessories

Revenues at the segment totaled $755.4 million, reflecting year-over-year improvement of 19.8%. This can be attributed to 20% growth in da Vinci procedure volume.

Systems

In the reported quarter, System revenues surged 55% year over year to $415.2 million. In fact, the company shipped 336 da Vinci Surgical Systems in the quarter, compared to 195 systems in the prior-year quarter.

Services

Services revenues were $232.7 million, up 29.8% from the year-ago quarter.

Outside the United States, revenues totaled $451.1 million, up 35.1% on a year-over-year basis.

Outside the United States, Intuitive Surgical placed 109 systems in the third quarter compared with 79 in the prior-year quarter. Of these, 47 were in Europe, 20 in Japan and 17 in China.

Margins

Adjusted gross profit in the reported quarter was $999.9 million, up 32.1% year over year. As a percentage of revenues, gross margin in the quarter was 71.3%, up 110 basis points (bps).

Selling, general and administrative expenses amounted to $363.3 million, up 21.5% from the prior-year quarter. Research and development expenses totaled $165.5 million, up 6.8% on a year-over-year basis.

Adjusted operating income totaled $570 million, up 41.7% year over year. As a percentage of revenues, operating margin in the quarter was 40.6%, up 330 bps.

Financial Position

The company exited the third quarter with cash, cash equivalents and investments of $8.22 billion, compared with $7.73 billion in the previous quarter.

Total assets were $12.93 billion, compared with $12.29 billion sequentially.

Outlook

Due to persistent uncertainty surrounding the extent and duration of the pandemic, and the timing of global recovery and economic normalization; the company cannot ascertain the future impact on its operations and financial performance during this time. Consequently, the company has refrained from issuing any guidance for 2021.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in estimates review.

VGM Scores

Currently, Intuitive Surgical, Inc. has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Intuitive Surgical, Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.