The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Intuitive Surgical met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased significantly.
Gross margins shrank, operating margins shrank, net margins grew.
Intuitive Surgical reported revenue of $537.8 million. The 13 analysts polled by S&P Capital IQ expected to see a top line of $535.9 million on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $446.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $3.54. The 11 earnings estimates compiled by S&P Capital IQ predicted $3.52 per share. GAAP EPS of $4.46 for Q3 were 46% higher than the prior-year quarter's $3.05 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 72.5%, 40 basis points worse than the prior-year quarter. Operating margin was 39.3%, 70 basis points worse than the prior-year quarter. Net margin was 34.1%, 670 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $587.8 million. On the bottom line, the average EPS estimate is $4.03.
Next year's average estimate for revenue is $2.16 billion. The average EPS estimate is $14.83.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,145 members out of 4,347 rating the stock outperform, and 202 members rating it underperform. Among 1,197 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,155 give Intuitive Surgical a green thumbs-up, and 42 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Intuitive Surgical is hold, with an average price target of $562.42.
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