On Apr 22, we retained
Intuitive Surgical, Inc.
) at Neutral after the company reported favorable results for the
first quarter 2013. In addition, ISRG made adjustments to its
guidance for 2013.
Why the Reiteration?
Intuitive Surgical reported first quarter 2013 earnings per
share of $4.56 beating the Zacks Consensus Estimate of $4.00
while surpassing the year-ago results of $3.50. The company
reported revenues of $611.4 million for the first quarter, up 23%
year over year. The results beat the Zacks Consensus Estimate of
Worldwide procedures increased 18% year over year in the first
quarter 2013. Growth in procedure count was 20% upon adjustment
for the leap year in 2012.
Following the release of the first quarter results, the Zacks
Consensus Estimate for 2013 has moved up (over the past 7 days)
by a nickel to $17.59 while the same for 2014 has remained
stagnant at $20.54 over the same timeframe.
The company modified favorable guidance for 2013. Intuitive
Surgical modified its procedure growth rate to the lower end of
20% to 23% from 20% to 23% earlier. ISRG expects revenues to grow
at the higher end of 16% to 19% for 2013 from 16% to 19% earlier.
Operating income continues to be forecast in a band of 38% to 39%
of sales for 2013.
Med-Tech Stocks that Warrant a Look
Intuitive Surgical carries a Zacks Rank #2 (Buy).
The Cooper Companies Inc.
Medical Action Industries Inc.
) carry Zacks Rank #1 (Strong Buy), Zacks Rank #2 (Buy) and Zacks
Rank #2 (Buy), respectively, and are expected to do well.
COOPER COS (COO): Free Stock Analysis Report
INTUITIVE SURG (ISRG): Free Stock Analysis
MEDICAL ACTION (MDCI): Free Stock Analysis
NUVASIVE INC (NUVA): Free Stock Analysis
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