) to beat expectations when it reports fourth quarter 2012
results on January 22.
Why a Likely Positive Surprise?
Our proven model shows that Intuitive Surgical is likely to
beat earnings because it has the right combination of two key
Positive Zacks ESP:
Expected Surprise Prediction or ESP (Read:
Zacks Earnings ESP: A Better Method
), which represents the difference between the Most Accurate
Estimate and the Zacks Consensus Estimate, is at +2.5%. This is a
meaningful and leading indicator of a likely positive earnings
surprise for shares.
Zacks Rank #2 (Buy):
Note that stocks with Zacks Ranks of #1, #2 and #3 have a
significantly higher chance of beating earnings. The sell rated
stocks (#4 and #5) should never be considered going into an
The combination of Intuitive Surgical's Zacks Rank #2 (Buy)
and Earnings ESP of +2.5% makes us confident of a positive
earnings beat this coming announcement.
What is Driving the Better than Expected Earnings?
Intuitive Surgical faces little direct competition in robotic
surgery, except from
) in certain niches. The installed base of Intuitive Surgical
continues to grow steadily as hospitals are compelled to upgrade
The positive trend is seen in the trailing four-quarter
average surprise of 14.5%, which was greatly helped by the 28.2%
surprise in the last reported quarter.
Other Stocks to Consider
Intuitive Surgical is not the only stock looking up this
earnings season. We also see likely earnings beats coming from
these two players.
) has Earnings ESP of +72.7% and Zacks Rank #1 (Strong Buy). The
company reports earnings on Feb 26, 2013.
Becton, Dickinson and Company
) has Earnings ESP of +3.3% and Zacks Rank #2 (Buy). The company
reports earnings on Feb 5, 2013.
ACCURAY INC (ARAY): Free Stock Analysis
BECTON DICKINSO (BDX): Free Stock Analysis
INTUITIVE SURG (ISRG): Free Stock Analysis
NUVASIVE INC (NUVA): Free Stock Analysis
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