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Intuitive Surgical (ISRG) Q1 Earnings & Revenues Top Estimates
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Intuitive Surgical, Inc. (ISRG - Free Report) reported first-quarter 2022 adjusted earnings per share (EPS) of $1.13, which beat the Zacks Consensus Estimate of $1.28 per share by 5.6%. The bottom line, however, declined 3.4% from the year-ago quarter.
GAAP EPS in the quarter was $1.00, compared with the year-ago quarter’s figure of $1.17 per share.
Revenue Details
The Zacks Rank #3 (Hold) company reported revenues of $1.49 billion, which climbed 15.1% from the prior-year quarter. Growth in da Vinci procedure volume and system placements contributed to the improvement. The top line outpaced the Zacks Consensus Estimate by 3.3%.
Segment Details
Instruments & Accessories
Revenues at the segment totaled $810.3 million, reflecting a year-over-year improvement of 15%. This can be attributed to a 19% da Vinci procedure volume growth. This was partially offset by stocking orders related to the company’s Extended Use Instruments program in the prior-year quarter.
Systems
In the reported quarter, System revenues surged 16% year over year to $428.1 million. The company shipped 311 da Vinci Surgical Systems in the quarter, compared to 298 systems in the prior-year quarter.
Intuitive Surgical, Inc. Price, Consensus and EPS Surprise
Services revenues were $249.3 million, up 14.6% from the year-ago quarter.
Outside the United States, revenues totaled $522.9 million, up 17.6% on a year-over-year basis.
Outside the United States, Intuitive Surgical placed 125 systems in the first quarter compared with 108 in the prior-year quarter. Of these, 78 were in Europe, 19 in Japan and nine in China.
Margins
Adjusted gross profit in the reported quarter was $1.04 billion, up 11.9% year over year. As a percentage of revenues, the gross margin in the quarter was 69.8%, down 200 basis points (bps).
Selling, general and administrative expenses amounted to $391.1 million, up 19.9% from the prior-year quarter. Research and development expenses totaled $210.5 million, up 31.7% on a year-over-year basis.
Adjusted operating income totaled $533.2 million, up 1.1% year over year. As a percentage of revenues, operating margin in the quarter was 27.4%, down 490 bps.
Financial Position
The company exited the first quarter with cash, cash equivalents and investments of $8.40 billion, compared with $8.62 billion in the previous quarter.
Total assets were $13.68 billion, compared with $13.56 billion sequentially.
Wrapping Up
Intuitive Surgical ended the first quarter on a strong note, wherein both earnings and revenues beat the consensus mark. The company displayed strong segmental performance in the quarter under review. It witnessed growth in da Vinci procedure volume in the first quarter. Overall international sales improved in the first quarter.
Per management, the COVID-19 resurgence impacted the company’s procedure volume in the first quarter. Despite this challenging environment, Intuitive Surgical witnessed healthy customer demand for its products in the quarter under review.
However, the contraction in both gross and operating margins is disappointing. Also, intense competition in the global MedTech space remains a concern.
Upcoming Earnings
Here are some medical stocks with the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy), or #3 to post an earnings beat this quarter.
Lucira Health’s long-term earnings growth rate is estimated at 40.2%. LHDX’s current-year P/E of 3.73x is significantly cheaper than the S&P 500 Index’s 19.36x.
NanoString Technologies, Inc. has an Earnings ESP of +1.53% and a Zacks Rank of 2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
NanoString Technologies’ 2023 earnings growth rate is estimated at 35.1%. NSTG’s revenue growth rate for 2023 is expected to be 41.83%.
Meridian Bioscience, Inc. has an Earnings ESP of +26.32% and a Zacks Rank of 2.
Meridian Bioscience’s long-term historical earnings growth rate is 16.3%. VIVO’s 2022 revenue growth rate is expected to be 6.2%.
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Intuitive Surgical (ISRG) Q1 Earnings & Revenues Top Estimates
Intuitive Surgical, Inc. (ISRG - Free Report) reported first-quarter 2022 adjusted earnings per share (EPS) of $1.13, which beat the Zacks Consensus Estimate of $1.28 per share by 5.6%. The bottom line, however, declined 3.4% from the year-ago quarter.
GAAP EPS in the quarter was $1.00, compared with the year-ago quarter’s figure of $1.17 per share.
Revenue Details
The Zacks Rank #3 (Hold) company reported revenues of $1.49 billion, which climbed 15.1% from the prior-year quarter. Growth in da Vinci procedure volume and system placements contributed to the improvement. The top line outpaced the Zacks Consensus Estimate by 3.3%.
Segment Details
Instruments & Accessories
Revenues at the segment totaled $810.3 million, reflecting a year-over-year improvement of 15%. This can be attributed to a 19% da Vinci procedure volume growth. This was partially offset by stocking orders related to the company’s Extended Use Instruments program in the prior-year quarter.
Systems
In the reported quarter, System revenues surged 16% year over year to $428.1 million. The company shipped 311 da Vinci Surgical Systems in the quarter, compared to 298 systems in the prior-year quarter.
Intuitive Surgical, Inc. Price, Consensus and EPS Surprise
Intuitive Surgical, Inc. price-consensus-eps-surprise-chart | Intuitive Surgical, Inc. Quote
Services
Services revenues were $249.3 million, up 14.6% from the year-ago quarter.
Outside the United States, revenues totaled $522.9 million, up 17.6% on a year-over-year basis.
Outside the United States, Intuitive Surgical placed 125 systems in the first quarter compared with 108 in the prior-year quarter. Of these, 78 were in Europe, 19 in Japan and nine in China.
Margins
Adjusted gross profit in the reported quarter was $1.04 billion, up 11.9% year over year. As a percentage of revenues, the gross margin in the quarter was 69.8%, down 200 basis points (bps).
Selling, general and administrative expenses amounted to $391.1 million, up 19.9% from the prior-year quarter. Research and development expenses totaled $210.5 million, up 31.7% on a year-over-year basis.
Adjusted operating income totaled $533.2 million, up 1.1% year over year. As a percentage of revenues, operating margin in the quarter was 27.4%, down 490 bps.
Financial Position
The company exited the first quarter with cash, cash equivalents and investments of $8.40 billion, compared with $8.62 billion in the previous quarter.
Total assets were $13.68 billion, compared with $13.56 billion sequentially.
Wrapping Up
Intuitive Surgical ended the first quarter on a strong note, wherein both earnings and revenues beat the consensus mark. The company displayed strong segmental performance in the quarter under review. It witnessed growth in da Vinci procedure volume in the first quarter. Overall international sales improved in the first quarter.
Per management, the COVID-19 resurgence impacted the company’s procedure volume in the first quarter. Despite this challenging environment, Intuitive Surgical witnessed healthy customer demand for its products in the quarter under review.
However, the contraction in both gross and operating margins is disappointing. Also, intense competition in the global MedTech space remains a concern.
Upcoming Earnings
Here are some medical stocks with the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy), or #3 to post an earnings beat this quarter.
Lucira Health, Inc. has an Earnings ESP of +485.72% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lucira Health’s long-term earnings growth rate is estimated at 40.2%. LHDX’s current-year P/E of 3.73x is significantly cheaper than the S&P 500 Index’s 19.36x.
NanoString Technologies, Inc. has an Earnings ESP of +1.53% and a Zacks Rank of 2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
NanoString Technologies’ 2023 earnings growth rate is estimated at 35.1%. NSTG’s revenue growth rate for 2023 is expected to be 41.83%.
Meridian Bioscience, Inc. has an Earnings ESP of +26.32% and a Zacks Rank of 2.
Meridian Bioscience’s long-term historical earnings growth rate is 16.3%. VIVO’s 2022 revenue growth rate is expected to be 6.2%.