Intuitive Surgical Inc.
) is set to release its 2014-second quarter results on Jul 22,
after the closing bell. In the last quarter, the company posted a
negative surprise of 20.1%. Let's see how things are shaping up for
Growth Factors This Past Quarter
Intuitive Surgical generates recurring revenue through its razor
blade business model. The model ensures that the company continues
to generate revenues following the initial sale of the da Vinci Si
The company keeps innovating new technologies for its Surgical
Systems. The company's recently launched da Vinci Xi won the U.S.
Food and Drug Administration (FDA) as well as Conformité Européenne
(CE) Mark in Europe.
However, Intuitive Surgical faces the risk of adoption of its
procedures as well as risk of lower capital spending by hospitals
particularly during the current changes emanating from healthcare
reform in the U.S.
Further, customer trade-out program for the recently purchased da
Vinci Si Surgical Systems with the company's recently announced da
Vinci Xi Surgical System has been negatively affecting the
Our proven model does not conclusively show that Intuitive Surgical
is likely to beat earnings this quarter. That is because a stock
needs to have both a positive Earnings ESP and a Zacks Rank of #1,
2 or 3 for this to happen. That is not the case here as you will
, the difference between the Most Accurate Estimate of $2.73 and
the Zacks Consensus Estimate of $2.76, stands at -1.09%.
Zacks Rank #3 (Hold):
The combination of Intuitive Surgical's Zacks Rank #3 (Hold) and
-1.09% ESP makes surprise prediction difficult. We caution against
stocks with Zacks #4 and #5 Ranks (Sell rated stocks) going into
the earnings announcement, especially when the company is seeing
negative estimate revisions momentum.
Other Stocks to Consider
Here are some other companies you may want to consider as our model
shows they have the right combination of elements to post an
earnings beat this quarter:
), Earnings ESP of 22.22% and a Zacks Rank #3 (Hold).
), Earnings ESP of 1.79% and a Zacks Rank #2 (Buy).
Wright Medical Group Inc.
), Earnings ESP of 2.22% and a Zacks Rank #1 (Strong Buy).
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INTUITIVE SURG (ISRG): Free Stock Analysis
HOSPIRA INC (HSP): Free Stock Analysis Report
WRIGHT MEDICAL (WMGI): Free Stock Analysis
CEPHEID INC (CPHD): Free Stock Analysis Report
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