Intuitive Surgical, Inc. ISRG is back to its winning ways as da Vinci procedures continue to grow worldwide. This Zacks Rank #1 (Strong Buy) is expected to see 14% revenue growth in 2024 and 16% in 2025.
Intuitive Surgical manufactures and markets the da Vinci surgical system globally. It strives to make surgery more effective, less invasive and easier on surgeons, patients and their families. As of June 30, 2024, its da Vinci surgical system installed base grew to 9,203 systems.
Another Earnings Beat in the Second Quarter
On July 18, 2024, Intuitive Surgical reported second quarter 2024 results and beat on the Zacks Consensus Estimate by $0.25. Earnings were $1.78 versus the consensus of $1.53.
It was the 6th earnings beat in a row.
The pandemic was a difficult time for the company as surgical procedures plunged worldwide. But that impact has receded.
Worldwide da Vinci procedures grew 17% year-over-year in the second quarter. It placed 341 da Vinci surgical systems, up from 331 last year.
Revenue rose 14% to $2.01 billion from $1.76 billion last year driven by growth in da Vinci procedure volume and an increase in the installed base of systems.
The Company finished the second quarter with $7.68 billion in cash, up $360 million.
Analysts Bullish on 2024 and 2025
No surprise that the analysts are bullish on Intuitive Surgical. 10 estimates were revised higher in the last week for both 2024 and 2025.
The 2024 Zacks Consensus Estimate jumped to $6.62 from $6.26. That is earnings growth of 16% from 2023 as the company made $5.71 last year.
They are bullish on 2025 as well. 10 estimates were also revised higher for 2025 in the last week. The Zacks Consensus rose to $7.60 from $7.32, or another 14.8% earnings growth.
Here's what this strong earnings growth looks like on the price and consensus chart.
Image Source: Zacks Investment Research
Shares at All-Time Highs
Intuitive Surgical went IPO in 2000. The stock has been one of the top performers over the last 24 years and recently hit new all-time highs.
Image Source: Zacks Investment Research
It's not a value stock. Intuitive Surgical trades at 68x earnings.
But for investors looking for growth, Intuitive Surgical, with its double digit revenue and earnings growth, should be on your short list.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
