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Intuitive Surgical (ISRG) Q1 Earnings & Revenues Top Estimates

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Zacks Equity Research
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Intuitive Surgical, Inc. ISRG reported first-quarter 2021 adjusted earnings per share (EPS) of $3.52, which beat the Zacks Consensus Estimate of $2.61 by 34.9%. Moreover, the bottom line improved 30.9% year over year.

Revenue Details

The Zacks Rank #2 (Buy) company reported revenues of $1.29 billion, which surged 17.5% from the prior-year quarter. The top line also outpaced the Zacks Consensus Estimate by 16.2%.

Segment Details

Instruments & Accessories

Revenues at the segment amounted to $706 million, reflecting year-over-year improvement of 14%. This can be attributed to 16% growth in da Vinci procedure volume.

Systems

In the reported quarter, System revenues surged 30% year over year to $369 million. In fact, the company shipped 298 da Vinci Surgical Systems in the quarter, compared to 237 systems in the prior-year quarter.

Intuitive Surgical, Inc. Price, Consensus and EPS Surprise

Intuitive Surgical, Inc. Price, Consensus and EPS Surprise
Intuitive Surgical, Inc. Price, Consensus and EPS Surprise

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

Services

Services revenues were $217.5 million, up 9.5% from the year-ago quarter.

Outside the United States, revenues totaled $444.6 million, up 39.8% on a year-over-year basis.

Outside the United States, Intuitive Surgical placed 108 systems in the first quarter compared with 55 in the prior-year quarter. Of these, 59 were in Europe, eight in Japan and 23 in China.

Margins

Adjusted gross profit in the reported quarter was $927.8 million, up 21.1% year over year. As a percentage of revenues, gross margin in the quarter was 71.8%, up 210 basis points (bps).

Adjusted operating income totaled $527.3 million, up 37.2% year over year. As a percentage of revenues, operating margin in the quarter was 40.8%, up 580 bps.

Financial Position

The company exited the first quarter with cash, cash equivalents and investments of $7.23 billion, compared with $6.87 billion in the previous quarter.

Total assets were $11.54 billion, compared with $11.17 billion sequentially.

Outlook

Due to persistent uncertainty surrounding the extent and duration of the pandemic, and the timing of global recovery and economic normalization; the company cannot ascertain the future impact on its operations and financial performance during this time. Consequently, the company has refrained from issuing any guidance for 2021.

Wrapping Up

Intuitive Surgical ended the first quarter on a solid note. The company displayed strong segmental performance in the quarter under review. Moreover, the company witnessed growth in da Vinci procedure volume in the quarter under review. Expansion in both gross and operating margins is a positive. Also, overall international sales improved in the quarter.

However, intense competition in the global MedTech space remains a concern.

Other Key Picks

Some other top-ranked stocks, which are expected to report earnings soon, are DENTSPLY SIRONA Inc. XRAY, Integra LifeSciences Holdings Corporation IART and Align Technology, Inc. ALGN, each carrying a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

DENTSPLY SIRONA is set to release results on May 6. The Zacks Consensus Estimate for DENTSPLY SIRONA’s first-quarter 2021 adjusted EPS is currently pegged at 55 cents. The consensus mark for first-quarter revenues stands at $923.3 million.

The Zacks Consensus Estimate for Integra LifeSciences’ first-quarter 2021 adjusted EPS is currently pegged at 56 cents. The consensus estimate for first-quarter revenues stands at $349.9 million.

The Zacks Consensus Estimate for Align Technology’s first-quarter 2021 adjusted EPS is currently pegged at $1.94. The consensus estimate for revenues stands at $806.4 million.

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Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report

DENTSPLY SIRONA Inc. (XRAY) : Free Stock Analysis Report

Integra LifeSciences Holdings Corporation (IART) : Free Stock Analysis Report

Align Technology, Inc. (ALGN) : Free Stock Analysis Report

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