Intuitive Surgical Earnings: 3 Things to Watch
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Intuitive Surgical Earnings:3 Things to Watch
Wall Street ExpectationsRevenueQ2: $502 millionFull Year: $2.04 billion
Earnings per ShareQ2: $2.83Full Year: $11.58
•Because of uncertainty surrounding system sales in the United States, Intuitive Surgical hasn’t been offering guidance.
•That being said, how the company performs against expectations will go a long way in determining the stock’s fate over the short-term.
•It will be interesting to see if management feels comfortable reinstating guidance moving forward.
daVinci System SalesMany investors will be watching to see if U.S. hospitals will start loosening the purse strings to buy more daVinci robots.
•For years, the company showed double digit growth in system sales for the daVinci in the United States. That growth actually went negative earlier this year.
•Investors shouldn’t read too much into the system sales themselves, as uncertainty surrounding the Affordable Care Act is still lingering, and hospitals are likely wanting to see if the new daVinci Xi is worth the money.
•Instead, focus on management comments regarding reception to the Xi.
More Surgical DiversityIn order to be continually relevant for decades to come, the daVinci needs to help doctors perform surgery in ever-more procedures.
•Historically, the company’s machine has been most oft-used to perform hysterectomies and prostatectomies.
•Last year, however, leading voices in the women’s health industry questioned the efficacy of using the daVinci to perform hysterectomies.
•Some believe the new Xi will help diversify the types of procedures the daVinci can be used for. Listen in for specific results in “general surgery”, and comments by management.
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