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Intuitive Surgical (ISRG) Up on Solid Preliminary Q4 Results

Zacks Equity Research
·3 min read

Intuitive Surgical, Inc. ISRG recently announced preliminary results for fourth-quarter and full-year 2020.

Revenues are anticipated to total $1.33 billion, up 4% year over year. The Zacks Consensus Estimate for the metric is pegged at $1.26 billion.

The company is scheduled to release fourth-quarter and full-year financial results on Jan 21.

Shares Up

Intuitive Surgical’s fourth-quarter and full-year 2020 preliminary results boosted its shares, which climbed 2.9% to $811.45 on Jan 13.



Notably, the Zacks Rank #3 (Hold) stock has rallied 9.6% compared with the industry and S&P 500 Index’s growth of 4.2% and 9.7%, respectively, in the past three months.

Highlights

Preliminary instrument and accessories revenues increased 11% on a year-over-year basis in fourth-quarter 2020 to about $747 million, primarily driven by growth in da Vinci procedure volume and stocking orders related to the company’s launch of Extended Use Instruments.

Per the preliminary announcement, systems revenues declined 12% to around $367 million compared with the prior-year quarter.

Full-Year Results

On a full-year basis, revenues are expected to be $4.36 billion, indicating a decrease of 3% from the previous year. The Zacks Consensus Estimate for revenues is pegged at $4.28 billion.

Preliminary instrument and accessories revenues for 2020 increased 2% year over year to $2.46 billion fueled by growth in da Vinci procedure volume. Meanwhile, preliminary systems revenues for 2020 fell 12% year over year to $1.18 billion.

da Vinci Update

Fourth-quarter 2020 worldwide da Vinci procedures increased approximately 6% from the year-ago quarter, highlighting sustained disruption resulting from the COVID-19 pandemic. Notably, the company shipped 326 da Vinci Surgical Systems in the fourth quarter compared with 336 in the year-ago period.

Full-year worldwide da Vinci procedures increased about 1% from the previous year. The company shipped 936 da Vinci Surgical Systems in 2020 compared with 1,119 in 2019.

COVID-19 Impact

The pandemic had a significant impact on Intuitive Surgical’s da Vinci procedure volumes and system placements as healthcare resources across the globe channeled their resources to combat the COVID-19 pandemic.

The adverse impact of the pandemic on the company’s business continues to differ by geography and region.

Key Picks

Some better-ranked stocks from the broader medical space are McKesson Corporation MCK, Patterson Companies, Inc. PDCO and IDEXX Laboratories, Inc. IDXX, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

McKesson has a projected long-term earnings growth rate of 6.6%.

Patterson Companies has an estimated long-term earnings growth rate of 9.6%.

IDEXX Laboratories has a projected long-term earnings growth rate of 15.8%.

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