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What's in Store for Intuitive Surgical's (ISRG) Q1 Earnings?

Intuitive Surgical, Inc. ISRG is scheduled to release first-quarter 2022 results on Apr 21, after the closing bell.

In the last reported quarter, the company delivered an earnings surprise of 1.6%. Its earnings beat estimates in three of the trailing four quarters and came in line once, the average surprise being 15.1%.

Q1 Estimates

Currently, the Zacks Consensus Estimate for first-quarter revenues is pegged at $1.44 billion, suggesting an improvement of 11.5% from the year-ago reported figure. The consensus mark for earnings stands at $1.07 per share, indicating a decline of 8.6% from the prior-year quarter.

Factors to Note

The Instruments & Accessories segment is likely to have witnessed a strong first quarter on the back of growth in da Vinci procedure volume and an increase in system placements.

Per the fourth-quarter 2021 earnings call, the pandemic-led disruptions stemming from COVID-19 resurgences, growth in the utilization of its products continued in the quarter and capital demand remained solid. The momentum is likely to be reflected in the first-quarter results.

Intuitive Surgical, Inc. Price and EPS Surprise

Intuitive Surgical, Inc. Price and EPS Surprise

Intuitive Surgical, Inc. price-eps-surprise | Intuitive Surgical, Inc. Quote

Per fourth-quarter earnings call, growth of the single port (SP) platform is likely to be driven by additional clinical indications and clearances in markets beyond the United States and Korea. During the fourth quarter, the company enhanced the development of its SP ecosystem, receiving 510(k) clearance for its Firefly Imaging Technology. It also received the same clearance for improvements in its SP instruments, including an expansion of lives to six of its eight instruments.

Per the fourth-quarter earnings call, management will build on its Generation 4 capabilities in multiport, while developing in-clinical utility for multiport surgery widely. The company will continue to bring its flexible endoscopy platform Ion to scale and boost capacity, quality and cost improvements while seeking to expand access to new markets. These developments might have contributed to Intuitive Surgical’s first-quarter performance.

ISRG’s new platforms made advancements in commercialization, innovation and clinical programs. This trend is likely to have continued in the first quarter as well.

What Our Quantitative Model Suggests

Our proven model does not conclusively predict an earnings beat for Intuitive Surgical this time around. The 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 -1.06%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: It carries a Zacks Rank #3.

Stocks Worth a Look

Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.

Zimmer Biomet Holdings, Inc. ZBH has an Earnings ESP of +0.60% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Zimmer Biomet’s long-term earnings growth rate is estimated at 5.8%. The company’s earnings yield of 5.2% compares favorably with the industry’s 0.4%.

Haemonetics Corporation HAE has an Earnings ESP of +0.84% and a Zacks Rank of 3.

Haemonetics’ long-term earnings growth rate is estimated at 10%. The company’s earnings yield of 4.9% compares favorably with the industry’s 0.4%.

Medtronic plc MDT has an Earnings ESP of +0.16% and a Zacks Rank of 3.

Medtronic’s long-term earnings growth rate is estimated at 7.6%. The company’s earnings yield of 5.2% compares favorably with the industry’s 0.4%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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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.

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