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Highlights
Intuitive Surgical is set to announce its Q3 2024 results on October 17, with projected revenues of $2 billion and adjusted earnings of $1.60 per share.
Continued growth in procedure volume and placements of the da Vinci 5 surgical platform is anticipated to drive the company’s performance.
The stock has appreciated by 45% this year, outperforming broader market indices, though it appears to be appropriately valued at its current price.
Intuitive Surgical (NASDAQ:ISRG) is scheduled to report its Q3 2024 financial results on October 17. Projections indicate revenues of approximately $2 billion, alongside adjusted earnings of $1.60 per share. These figures suggest a revenue performance that surpasses consensus estimates, although earnings may fall slightly short.
The company has been capitalizing on increased placements of its da Vinci surgical systems and rising procedure volumes. The installed base continues to expand, which drives recurring revenue from consumables associated with the da Vinci platform. Intuitive Surgical has projected a global da Vinci procedure volume growth of 15.5% to 17% for 2024. Alongside an increased installed base, the company is also expected to see slight improvements in its operating margin, positively impacting the overall bottom line.
In the previous quarter, Intuitive Surgical reported revenues of $2.0 billion, reflecting a year-over-year growth of 6%, fueled by a 17% increase in worldwide da Vinci procedure volumes. The company placed a total of 341 da Vinci systems during the quarter, including 70 of the newly launched da Vinci 5 systems in the U.S. This expansion resulted in a total installed base increase of 14% year-over-year, bringing the total to 9,203 systems by the end of Q2. Operating margins also saw a notable improvement, expanding by around 340 basis points to reach 28.2%.
Despite a strong year-to-date performance, with a 45% increase in stock value, ISRG appears to be fairly priced in the market. Valuation estimates suggest a price per share of approximately $462, slightly below the current market value. Over a longer timeframe, ISRG stock has shown more volatility compared to the S&P 500, while the Trefis High Quality (HQ) Portfolio has consistently outperformed the index with lower risk. This disparity highlights the relative performance metrics of high-quality stocks versus more volatile counterparts in the market.
