The 10-second takeaway
For the quarter ended March 31 (Q1), Intuitive Surgical beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.
Margins improved across the board.
Intuitive Surgical booked revenue of $495.2 million. The 13 analysts polled by S&P Capital IQ anticipated revenue of $465.8 million on the same basis. GAAP reported sales were 28% higher than the prior-year quarter's $388.1 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 $3.50. The 15 earnings estimates compiled by S&P Capital IQ forecast $3.17 per share. GAAP EPS of $3.50 for Q1 were 35% higher than the prior-year quarter's $2.59 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 71.9%, 10 basis points better than the prior-year quarter. Operating margin was 39.0%, 80 basis points better than the prior-year quarter. Net margin was 29.0%, 220 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $520.1 million. On the bottom line, the average EPS estimate is $3.55.
Next year's average estimate for revenue is $2.12 billion. The average EPS estimate is $14.72.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,034 members out of 4,243 rating the stock outperform, and 209 members rating it underperform. Among 1,272 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,228 give Intuitive Surgical a green thumbs-up, and 44 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 $489.73.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Intuitive Surgical. Motley Fool newsletter services have recommended buying shares of Intuitive Surgical. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.