Earnings Preview: Intuitive Surgical Inc. (NASDAQ: ISRG) Third Quarter 2010
Monday, October 04, 2021 2:55 PM

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Intuitive Surgical Inc. (NASDAQ: ISRG) is scheduled to release third-quarter earnings after the closing bell on Tuesday, October 19, 2010. Analysts, on average, expect the company to report earnings of $2.10 per share on revenue of $349.51 million. In the year-ago quarter, the company reported earnings of $1.64 per share on revenue of $305.63 million.

Intuitive Surgical Inc., together with its subsidiaries, engages in the design, manufacture, and marketing of da Vinci surgical systems for use in urologic, gynecologic, cardiothoracic, general, and head and neck surgeries. The company enjoys a virtual monopoly in the emerging field of minimally invasive robotic surgery. Intuitive Surgical makes money not just from selling machines, but also on service and tools used during surgery, giving it an attractive business model. The company's recurring revenue stream continues to grow as the installed base of systems expands. The company has benefited from recovery in hospital capital spending budgets and the continued adoption of robotic procedures.

In the preceding second-quarter, the Sunnyvale, California-based company's net income was $88.7 million, or $2.19 a share, compared to $62.4 million, or $1.62 a share, in the year-ago quarter. Revenue climbed to $350.7 million from $260.6 million.  Analysts, on average, expected the company to report earnings of $2.04 per share on revenue of $334.94 million. During the second quarter, the company sold 108 da Vinci systems, 86 in the United States, 14 in Europe, and eight in the rest of world markets.

The company lifted its forecast for full-year 2010 revenue at its last earnings call in July. The company expects 2010 full year revenue to grow between 30% and 33% compared to 27% to 30% forecasted earlier. The company also boosted its guidance for full year 2010 gross profit margin. Intuitive Surgical anticipates full year gross profit percentage to come in between 72% and 73% compared to 72% forecasted earlier. However, its expects the ASP to decline in the second half, reflecting a lower priced product mix and lower U.S. dollar revenue recognized on euro based sales.  Intuitive Surgical also expects second half gross margins to decline from the first half, driven by lower anticipated average system selling prices.

Among other developments, Intuitive Surgical announced in late July that its board authorized the company to repurchase up to an additional $150 million of the company's outstanding common stock.
In terms of stock performance, Intuitive Surgical shares have lost nearly 4 percent since the beginning of the year.
Disclosure: Author doesn't own any of the stocks discussed here.


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