Latest news with #ISRG
Yahoo
11 hours ago
- Business
- Yahoo
What to Expect From Intuitive Surgical's Next Quarterly Earnings Report
With a market cap of $191.3 billion, Intuitive Surgical, Inc. (ISRG) designs, manufactures, and markets advanced robotic systems that support minimally invasive surgeries. Its flagship products include the da Vinci Surgical System and the Ion endoluminal system, which enhance surgical precision and expand diagnostic capabilities. The Sunnyvale, California-based company is expected to announce its fiscal Q2 2025 earnings results on Thursday, July 17. Ahead of this event, analysts are expecting ISRG to report a profit of $1.52 per share, up 3.4% from $1.47 per share in the year-ago quarter. The company has exceeded Wall Street's bottom-line estimates in the past four quarters. In Q1 2025, Intuitive Surgical surpassed the consensus EPS estimate by 3.7%. Holiday Trading, Trade Negotiations and Other Key Things to Watch this Week Alphabet's Strong Free Cash Flow Makes GOOG Stock a Value Buy Options Flow Alert: Bulls Making Their Move in GOOGL Stock Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. For fiscal 2025, analysts expect the surgical robot maker to report EPS of $6.23, down 3.9% from $6.48 in fiscal 2024. However, EPS is expected to rebound and grow nearly 18% year-over-year to $7.35 in fiscal 2026. ISRG stock has climbed 19.9% over the past year, outperforming the S&P 500 Index's ($SPX) 12.6% gain and the Health Care Select Sector SPDR Fund's (XLV) 8.2% decline over the same period. Shares of Intuitive Surgical rose 1.9% following its Q1 2025 results on Apr. 22, primarily because the company beat analysts' expectations, reporting adjusted EPS of $1.81 and revenue of $2.3 billion. The company placed 367 da Vinci systems, including 147 of its next-generation da Vinci 5 systems. Additionally, the global procedure growth of 17% and a 15% increase in the installed base to 10,189 systems reinforced investor confidence. Analysts' consensus rating on Intuitive Surgical stock is cautiously optimistic overall, with a "Moderate Buy" rating. Out of 28 analysts covering the stock, 19 recommend a "Strong Buy," two have a "Moderate Buy" rating, six give a "Hold" rating, and one "Strong Sell." This configuration is slightly more bullish than three months ago, with 18 analysts suggesting a "Strong Buy." As of writing, ISRG is trading below the average analyst price target of $589.92. On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
5 days ago
- Business
- Globe and Mail
Is ISRG's Procedure Growth Enough to Offset Margin Pressures in 2025?
Intuitive Surgical ISRG entered 2025 with strong operational momentum, delivering 17% year-over-year growth in da Vinci procedures and a 19% rise in total revenues (to $2.25 billion) in the first quarter. Notably, day-adjusted procedure growth reached 18.5%, causing management to raise full-year guidance to 15-17%. This growth was supported by robust adoption in general surgery in the United States and accelerated utilization in emerging markets like India, Korea and the United Kingdom. The rollout of the da Vinci 5 platform continued at pace, with 147 new systems placed and over 32,000 procedures completed using the new-generation robot. However, this clinical and procedural strength faces growing financial headwinds. Gross margins declined to 66.4% in the first quarter from 67.6% a year ago due to increased depreciation, a higher mix of lower-margin platforms like Ion and da Vinci 5, and emerging cost pressures from newly implemented global tariffs. ISRG now expects tariff-driven cost of sales to erode margins by approximately 170 basis points for the full year, revising its gross margin forecast to 65-66.5%. While recurring revenues remain strong, representing 85% of the total revenues, capital expenditures, manufacturing investments and rising input costs may challenge operating leverage in the near term. Moreover, constrained hospital budgets in key markets like Germany and Japan could tamper the company's capital placement run rate, adding another layer of margin pressure. Intuitive Surgical's solid procedure growth and market adoption are commendable, but they will be tested against a backdrop of tightening margins, macroeconomic headwinds and evolving trade dynamics. Investors should watch closely whether strong volume momentum can continue to outrun inflationary and structural cost drags in the quarters ahead. Improving Margin for ISRG's Rivals In the first quarter of 2025, Stryker SYK posted strong financials, with organic sales growth of 10.1% and total revenues reaching $5.87 billion, reflecting an 11.9% year-over-year rise. This was driven by robust demand across MedSurg & Neurotechnology and Orthopaedics segments, including standout growth in trauma and extremities, and expanding Mako installations. Stryker's adjusted gross margin was 65.5%, up 190 basis points year over year, aided by manufacturing efficiencies, favorable pricing and product mix. Despite a $200 million tariff headwind expected for the year, Stryker maintained operating margin expansion of 100 basis points, reflecting strong cost control and operational leverage. In contrast, Medtronic MDT reported 3.9% year-over-year revenue growth in the fourth quarter of fiscal 2025 (to $8.93 billion), with strength in Cardiovascular (up 22% in cardiac ablation), Neuroscience, and Diabetes offsetting surgical headwinds. Medtronic's gross margin improved to 64.7% (up 19 basis points) and operating margin rose to 26.6%, buoyed by pricing strategies and cost-of-goods-sold productivity gains. However, growth remained uneven across Medtronic's portfolios. ISRG's Price Performance, Valuation and Estimates Shares of ISRG have gained 0.1% in the year-to-date period against the industry 's decline of 11.4%. Image Source: Zacks Investment Research From a valuation standpoint, Intuitive Surgical trades at a forward price-to-earnings ratio of 62.09, above the industry average. But, it is still lower than its five-year median of 72.17. ISRG carries a Value Score of D. The Zacks Consensus Estimate for Intuitive Surgical's 2025 earnings implies a 6.8% rise from the year-ago period's level. The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Medtronic PLC (MDT): Free Stock Analysis Report Stryker Corporation (SYK): Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG): Free Stock Analysis Report
Yahoo
6 days ago
- Business
- Yahoo
Intuitive Surgical, Inc. (ISRG): A Bull Case Theory
We came across a bullish thesis on Intuitive Surgical, Inc. (ISRG) on PitchStack Investing's Substack. In this article, we will summarize the bulls' thesis on ISRG. Intuitive Surgical, Inc. (ISRG)'s share was trading at $513 as of 12th June. ISRG's trailing and forward P/E were 76.49 and 67.11 respectively according to Yahoo Finance. Close-up of a robotic endoluminal surgery device performing a procedure in an operating room. Intuitive Surgical stands as a dominant force in the field of robotic-assisted surgery, leveraging decades of innovation to maintain a commanding 90% market share in this high-growth sector. The company continues to enhance minimally invasive care through its advanced technologies, most notably the Ion system, which delivers an 83% diagnostic yield for small lung nodules—far surpassing traditional manual methods. This superior performance not only positions Ion for broader adoption in pulmonary care but also adds a meaningful growth vector to Intuitive's already robust platform. The widespread acceptance of the company's systems across hospitals worldwide reinforces its competitive moat, making it exceedingly difficult for new entrants to gain traction. Investors looking for sustained long-term growth may find the current setup compelling: analysts project a 115% stock price increase over the next five years, implying a 17% internal rate of return. This growth potential is grounded in a combination of expanding procedure volumes, continuous product innovation, and a razor-and-blade business model that ensures recurring revenue through instruments and service. Intuitive's entrenched position in hospitals, proven clinical efficacy, and ongoing investments in next-generation systems provide a strong foundation for continued leadership in surgical robotics. As healthcare systems globally prioritize better outcomes and operational efficiency, Intuitive Surgical is uniquely positioned to benefit from this secular shift, offering investors a rare blend of resilience, technological leadership, and upside. Previously, we covered a on ISRG by The Antifragile Investor in January 2025, focusing on its da Vinci-driven moat, IP edge, and recurring revenue. PitchStack Investing shares this view but emphasizes growth—citing Ion's clinical advantage, 90% market share, and a 17% IRR forecast. Both see a leader, but one stresses defensibility, the other, accelerating upside. Intuitive Surgical, Inc. (ISRG) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 106 hedge fund portfolios held Intuitive Surgical, Inc. (ISRG) at the end of the first quarter which was 95 in the previous quarter. While we acknowledge the risk and potential of ISRG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-06-2025
- Business
- Yahoo
Deutsche Bank Slashes Intuitive Surgical (ISRG) To Sell from Neutral
Intuitive Surgical, Inc. (NASDAQ:ISRG) is one of the best stocks to buy. On June 9, Deutsche Bank slashed its rating for ISRG from Neutral to Sell, trimming the price target from $440 to $515. Deutsche Bank announced that it will hold an investor webinar with Jon Reuter, COO of Keck Hospitals of USC, on June 9, to explore how hospitals are viewing Intuitive's remanufactured Endowrist instruments. The bank projected rising competition for Intuitive Surgical, signaling potential headwinds ahead. Deutsche Bank, though confident in da Vinci's lasting dominance, pointed to several upcoming rival systems, including Medtronic's Hugo, expected FDA approval in late 2025, as potential threats to ISRG's competitive edge. Even with a Sell rating, the firm highlighted the da Vinci system as a historic disruptor within medical technology. A medical team performing minimally invasive surgery with a da Vinci Surgical System. Deutsche Bank noted that shareholders have realized substantial gains, with shares soaring more than 26,000% since the company's IPO in 2000, compared to a nearly 500% rise in the broader market, and ISRG remains a bullish idea. Intuitive Surgical, Inc. (NASDAQ:ISRG) develops robotic systems like da Vinci and Ion to advance minimally invasive procedures, supported by specialized tools, training, and digital services to enhance surgical outcomes and healthcare efficiency. While we acknowledge the potential of ISRG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
18-06-2025
- Business
- Globe and Mail
ISRG vs BSX: Which Medical Device Stock Has More Room to Run?
In a healthcare landscape increasingly shaped by technology, two names that stand out for their innovation and long-term potential are Intuitive Surgical ISRG and Boston Scientific BSX. Both companies are at the forefront of minimally invasive procedures — Intuitive as the undisputed leader in robotic-assisted surgery, and Boston Scientific as a powerhouse in interventional medical devices. With growing demand for advanced surgical solutions and aging global populations driving healthcare needs, investors are eyeing these med-tech giants as attractive long-term plays. But, which stock offers more compelling upside right now? Let's break down the fundamentals, growth trajectories, and market positions of ISRG and BSX to find out which one deserves a place in your portfolio. ISRG & BSX: Price Performance Intuitive Surgical represents a high-growth, high-premium pure play on robotic-assisted surgery. Its exceptional performance and growth provide compelling upside, but investors must accept margin compression and valuation risk in the short-to-medium term. Boston Scientific offers broader exposure to medical device innovation, with reliable growth driven by cardiovascular and interventional segments. It trades at a more moderate valuation and may appeal to investors seeking growth with less volatility. The year-to-date price performance of Intuitive Surgical has not been impressive, likely due to tariff concerns and rising competition from Chinese robotic device makers. However, BSX has outperformed ISRG likely due to its diversified business as well as strong U.S. demand. Shares of ISRG have lost 1.9% year to date, while those of BSX have gained 13.9%. Market Position & Core Offerings Intuitive Surgical dominates the surgical robotics niche with its flagship da???Vinci system, which continues to gain traction globally — 367 new units placed in the first quarter of 2025 alone, leading to a 17% year-over-year increase in procedures. Boston Scientific, by contrast, operates across a broader landscape of interventional medical devices, from cardiovascular to neuromodulation. Its success with Farapulse pulsed field ablation and strong cardiovascular sales (+26% in first-quarter 2025) highlight its diversified growth drivers. Growth & Performance ISRG delivered robust first-quarter 2025 results: revenues grew 19% to $2.25 billion, adjusted net income rose 22% to $767.5 million, and adjusted EPS grew 21% to $1.81. Its projected procedure growth remains strong at 15-17% for the year, though margins may be pressured by tariffs. BSX also posted solid first-quarter 2025 earnings, with adjusted EPS of $0.75 and sales worth $4.66 billion, both beating expectations on the back of cardiovascular and medical-surgical divisions. For the second quarter of 2025, revenues are expected to grow by double digits, driven by PFA and other interventions. Estimates Comparison for ISRG & BSX The Zacks Consensus Estimate for ISRG's fiscal 2025 sales and EPS implies a year-over-year improvement of 15.6% and 6.8%, respectively. EPS estimates for 2025 and 2026 have trended southward over the past 60 days. ISRG Estimate Movement The Zacks Consensus Estimate for Boston Scientific's 2025 sales and EPS implies a year-over-year improvement of 16.4% and 15.9%, respectively. Moreover, EPS estimates for 2025 and 2026 have improved over the past 60 days. BSX Estimate Movement Cash & Cash Flow Intuitive Surgical maintains an exceptionally strong balance sheet, with $4.51 billion in cash and no debt as of the first quarter of 2025. The company generated free cash flow of around $465 million and operating cash flow of $582 million, driven by continued growth in da Vinci system procedures and high-margin recurring revenues from instruments and accessories. Boston Scientific, operates with a more leveraged profile. The company reported $725 million in cash and $11.31 billion in total debt, with a debt-to-equity ratio of nearly 50%. Despite this, BSX maintains strong cash generation, posting $541 million in operating cash flow and $354 million in free cash flow for the first quarter of 2025 alone. Its diversified product base, especially in cardiovascular and electrophysiology, supports ongoing growth and debt service. Risks & Operational Challenges ISRG is exposed to geopolitical and trade-related tariff risks — especially a 125% tariff on Chinese exports — which have led to margin revisions for 2025. Mitigation efforts include supply-chain adjustments and pricing flexibility. BSX contends with regulatory and legal exposures (notably from past medical-device recalls and mesh product lawsuits), but its diversified supply chain and global footprint help buffer macroeconomic pressures. ISRG or BSX: Which Is a Better Bet? For investors focused on explosive, category-leading growth in surgical robotics, ISRG may still be the superior choice. But those who prefer balanced exposure across med-tech segments with a steadier valuation profile might consider BSX as a more diversified, resilient option. Intuitive Surgical stands out for its pristine balance sheet, zero debt, and strong free cash flow, making it an appealing choice for investors prioritizing financial stability and growth. Boston Scientific's leveraged balance sheet is offset by a diversified product base and solid, consistent cash generation, positioning it as a resilient and innovative med-tech player for investors comfortable with moderate financial risk. Both companies currently carry a Zacks Rank #3 (Hold). However, if we go by the Zacks Style Score, BSX seems to be a better bet compared to ISRG. While ISRG has a Zacks Style Score of 'D', BSX's score is 'C', reflecting better growth potential. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Boston Scientific Corporation (BSX): Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG): Free Stock Analysis Report
