Intuitive Surgical (NASDAQ: ISRG) Beats Earnings Estimates, Analyst Maintains Strong Buy Rating

BTIG's Ryan Zimmerman raised their price target on Intuitive Surgical (NASDAQ: ISRG) by 2.2% from $412 to $421 on 2024/04/19. The analyst maintained their Strong Buy rating on the stock.

Zimmerman commended Intuitive Surgical's recent earnings report, describing it as a "beat." The analyst noted that BTIG had already anticipated the Street's low expectations on Intuitive Surgical's Systems and believed that hospitals would hold off ahead of the Dv5 launch. However, Zimmerman highlighted that system demand proved to be more robust, supported by the option to upgrade and a healthy Capex environment.

Looking ahead, Zimmerman emphasized that the focus should shift to Dv5 rather than the latest earnings report. Many investors are expected to look at the potential movement of FY 2025 and FY 2026 EPS estimates as the company optimizes its supply chain in preparation for the broader Dv5 launch.

In the first quarter of 2024, Intuitive Surgical reported EPS of $1.50, surpassing the Zacks Consensus Estimate of $1.40. This represented a 22% increase compared to Q1 2023's EPS of $1.23. Additionally, the company's revenue for the quarter stood at $1.89 billion, surpassing the Zacks Consensus Estimate by 1.6% and Q1 2023's revenue by 11.2%.

Intuitive Surgical's management did not provide financial guidance in their press release of the earnings call presentation. However, CEO Gary Guthart expressed satisfaction with the company's performance, highlighting significant milestones reached across different aspects of the business. Guthart also mentioned positive feedback received for the measured launch of da Vinci 5 and the continued adoption of SP and Ion, reiterating the company's commitment to improving patient outcomes.

Other analysts also updated their ratings and price targets for Intuitive Surgical on April 19, 2024. Jefferies' David Windley raised the price target by 2.7% to $375 and maintained a Hold rating on the stock. Piper Sandler's Adam Maeder increased the price target by 2.4% to $435 while maintaining a Strong Buy rating. On the other hand, Baird's Mike Polark lowered the price target by -0.9% to $436 but maintained a Buy rating.

Currently, 81.8% of top-rated analysts consider Intuitive Surgical a Strong Buy or Buy, while 18.2% rate it as a Hold. No analysts recommend or strongly recommend selling the stock.

The consensus forecast among analysts predicts that Intuitive Surgical's upcoming year will deliver earnings per share (EPS) of $4.99. If these projections hold true, it would represent an 11.6% decrease in annual EPS compared to the previous year.

Since Intuitive Surgical's latest quarterly report on April 18, 2024, the stock price has declined by 1.7%. However, the stock has seen a year-over-year increase of 22.7%, outpacing the broader S&P 500's growth of 19.6%.

Ryan Zimmerman, the BTIG analyst who raised Intuitive Surgical's price target, is ranked in the top 6% of Wall Street analysts by WallStreetZen. With an average return of 17.1% and a 52.7% win rate, Zimmerman specializes in the Healthcare sector.

Intuitive Surgical, Inc. is a company that develops, manufactures, and markets products that enable physicians and healthcare providers to enhance the quality of and access to minimally invasive care. The company is based in Sunnyvale, California, and offers the da Vinci Surgical System, which allows for complex surgery using a minimally invasive approach. Additionally, Intuitive Surgical provides the Ion endoluminal system for diagnostic procedures and a range of stapling, energy, and core instrumentation for its surgical systems. The company also offers support, installation, repair, and maintenance services, along with integrated digital capabilities for hospitals.

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