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What's in Store for Intuitive Surgical (ISRG) Q1 Earnings?
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Intuitive Surgical, Inc. (ISRG - Free Report) is scheduled to release first-quarter 2020 results on Apr 16, after the closing bell. In the last reported quarter, the company delivered a positive earnings surprise of 6.8%. Further, it has a trailing four-quarter positive earnings surprise of 8.3%, on average.
Q1 Estimates
Currently, the Zacks Consensus Estimate for first-quarter revenues is pegged at $1.04 billion, suggesting growth of 7% from the year-ago quarter. The consensus estimates for earnings is pegged at $2.58 per share, indicating a decline of 1.2% from the year-ago reported figure.
Instruments & Accessories: A Key Catalyst
The Instruments & Accessories segment is anticipated to witness a solid first-quarter. In fact, the Zacks Consensus Estimate for this segment for the first quarter stands at $613 million, suggesting an improvement of 11.1% from the year-ago quarter. Growth in da Vinci procedure volume is likely to have driven the improvement.
Further, the flagship — da Vinci surgical system — has been driving revenues consistently for the segment. In fact, impact of the company’s da Vinci SP surgical system is likely to get reflected in the first-quarter performance.
In fact, per the preliminary announcement, first-quarter worldwide da Vinci procedures are expected to improve approximately 10% from the year-ago quarter.
However, according to the company, with aggravation of the COVID-19 pandemic, its procedure volume and system placement disruption might increase. As a result, the total impact of such disruptions might weigh on the company’s first-quarter performance.
Other Factors at Play
Revenues from other two segments — Systems and Services — are likely to have positively impacted the first quarter performance on account of steady progress in the imaging and reality programs.
For the quarter to be reported, the Zacks Consensus Estimate for Services stands at $194 million, indicating an improvement 11.5% from the prior-year quarter reported figure. The same for Systems is pegged at $270 million, suggesting growth of 8.9% from the year-ago quarter’s figure.
In fourth-quarter 2019, Intuitive Surgical announced that it is in the Phase I launch of the da Vinci SP, having installed six systems in the fourth quarter itself. Moreover, the company initiated the launch of SynchroSeal sealing and transection device for use in general surgery in fourth-quarter 2019. The company, therefore, continues to introduce technologies for surgical systems and strengthens product portfolio.
Further, in November 2019, the company had received FDA clearance for the SynchroSeal instrument and E-100 generator. SynchroSeal is a single-use, bipolar, electrosurgical instrument created for grasping, dissection, sealing, and transection of tissue that provides enhanced versatility to the company’s da Vinci Energy portfolio. The E-100 generator is an electrosurgical generator developed to power two key instruments — Vessel Sealer Extend and SynchroSeal — on the da Vinci X and Xi Surgical Systems.
The aforementioned clearances and approval are likely to have aided Intuitive Surgical’s first-quarter performance.
Notably, per the preliminary announcement, the company has withdrawn full-year 2020 outlook and procedure guidance owing to the uncertainty surrounding the global pandemic and the timing of global recovery and economic normalization. As a result, the company cannot provide the future impact on its operations and financial performance during this time.
What Our Quantitative Model Suggests
Per our proven model, a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here as you will see.
Earnings ESP: Intuitive Surgical has an Earnings ESP of -7.80%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Intuitive Surgical carries a Zacks Rank #3.
Stocks Worth a Look
Here are a few medical stocks worth considering as they have the right combination of elements to post an earnings beat this quarter.
Cardinal Health, Inc. (CAH - Free Report) has an Earnings ESP of +1.03% and a Zacks Rank of 1.
DexCom, Inc. (DXCM - Free Report) has an Earnings ESP of +143.90% and a Zacks Rank of 2.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
Image: Bigstock
What's in Store for Intuitive Surgical (ISRG) Q1 Earnings?
Intuitive Surgical, Inc. (ISRG - Free Report) is scheduled to release first-quarter 2020 results on Apr 16, after the closing bell. In the last reported quarter, the company delivered a positive earnings surprise of 6.8%. Further, it has a trailing four-quarter positive earnings surprise of 8.3%, on average.
Q1 Estimates
Currently, the Zacks Consensus Estimate for first-quarter revenues is pegged at $1.04 billion, suggesting growth of 7% from the year-ago quarter. The consensus estimates for earnings is pegged at $2.58 per share, indicating a decline of 1.2% from the year-ago reported figure.
Instruments & Accessories: A Key Catalyst
The Instruments & Accessories segment is anticipated to witness a solid first-quarter. In fact, the Zacks Consensus Estimate for this segment for the first quarter stands at $613 million, suggesting an improvement of 11.1% from the year-ago quarter. Growth in da Vinci procedure volume is likely to have driven the improvement.
Further, the flagship — da Vinci surgical system — has been driving revenues consistently for the segment. In fact, impact of the company’s da Vinci SP surgical system is likely to get reflected in the first-quarter performance.
Intuitive Surgical, Inc. Price and EPS Surprise
Intuitive Surgical, Inc. price-eps-surprise | Intuitive Surgical, Inc. Quote
In fact, per the preliminary announcement, first-quarter worldwide da Vinci procedures are expected to improve approximately 10% from the year-ago quarter.
However, according to the company, with aggravation of the COVID-19 pandemic, its procedure volume and system placement disruption might increase. As a result, the total impact of such disruptions might weigh on the company’s first-quarter performance.
Other Factors at Play
Revenues from other two segments — Systems and Services — are likely to have positively impacted the first quarter performance on account of steady progress in the imaging and reality programs.
For the quarter to be reported, the Zacks Consensus Estimate for Services stands at $194 million, indicating an improvement 11.5% from the prior-year quarter reported figure. The same for Systems is pegged at $270 million, suggesting growth of 8.9% from the year-ago quarter’s figure.
In fourth-quarter 2019, Intuitive Surgical announced that it is in the Phase I launch of the da Vinci SP, having installed six systems in the fourth quarter itself. Moreover, the company initiated the launch of SynchroSeal sealing and transection device for use in general surgery in fourth-quarter 2019. The company, therefore, continues to introduce technologies for surgical systems and strengthens product portfolio.
Further, in November 2019, the company had received FDA clearance for the SynchroSeal instrument and E-100 generator. SynchroSeal is a single-use, bipolar, electrosurgical instrument created for grasping, dissection, sealing, and transection of tissue that provides enhanced versatility to the company’s da Vinci Energy portfolio. The E-100 generator is an electrosurgical generator developed to power two key instruments — Vessel Sealer Extend and SynchroSeal — on the da Vinci X and Xi Surgical Systems.
The aforementioned clearances and approval are likely to have aided Intuitive Surgical’s first-quarter performance.
Notably, per the preliminary announcement, the company has withdrawn full-year 2020 outlook and procedure guidance owing to the uncertainty surrounding the global pandemic and the timing of global recovery and economic normalization. As a result, the company cannot provide the future impact on its operations and financial performance during this time.
What Our Quantitative Model Suggests
Per our proven model, a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here as you will see.
Earnings ESP: Intuitive Surgical has an Earnings ESP of -7.80%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Intuitive Surgical carries a Zacks Rank #3.
Stocks Worth a Look
Here are a few medical stocks worth considering as they have the right combination of elements to post an earnings beat this quarter.
Chemed Corporation (CHE - Free Report) has an Earnings ESP of +1.78% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cardinal Health, Inc. (CAH - Free Report) has an Earnings ESP of +1.03% and a Zacks Rank of 1.
DexCom, Inc. (DXCM - Free Report) has an Earnings ESP of +143.90% and a Zacks Rank of 2.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>