Intuitive Surgical, Inc. (NASDAQ: ISRG) is positioned for growth as da Vinci procedures gain momentum globally. With a Zacks Rank #1 (Strong Buy), the company is forecasted to achieve a 14% revenue increase in 2024 and a further 16% in 2025.
Intuitive Surgical, a pioneer in manufacturing and distributing the da Vinci surgical system worldwide, aims to revolutionize surgical practices for enhanced efficiency, reduced invasiveness, and improved outcomes. As of June 30, 2024, the company’s installed base of da Vinci systems has expanded to 9,203 units.
Continued Earnings Success
On July 18, 2024, Intuitive Surgical reported its second-quarter 2024 results, surpassing the Zacks Consensus Estimate by $0.25 with earnings of $1.78 compared to the expected $1.53. This marked the sixth consecutive earnings beat for the company.
Despite the challenges posed by the pandemic, global da Vinci procedures surged by 17% year-over-year in the second quarter, with 341 systems installed, up from 331 in the previous year. Revenue also climbed by 14% to $2.01 billion, driven by increased procedure volume and system installations.
Analysts’ Positive Outlook
Analysts are optimistic about Intuitive Surgical’s prospects, with 10 upward revisions in estimates for both 2024 and 2025. The Zacks Consensus Estimate for 2024 rose to $6.62 from $6.26, reflecting a 16% earnings growth. Similarly, the 2025 estimate increased to $7.60 from $7.32, indicating a further 14.8% growth.
Shares Reach Record Highs
Since its IPO in 2000, Intuitive Surgical has consistently delivered strong performance, recently achieving all-time highs. Trading at 68x earnings, the stock is not a value play but presents substantial growth potential for investors.
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