The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Intuitive Surgical beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew.
Gross margins shrank, operating margins grew, net margins dropped.
Intuitive Surgical booked revenue of $609.3 million. The 15 analysts polled by S&P Capital IQ looked for revenue of $584.4 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $496.8 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 $4.25. The 14 earnings estimates compiled by S&P Capital IQ predicted $4.06 per share. GAAP EPS of $4.25 for Q4 were 13% higher than the prior-year quarter's $3.76 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%, 110 basis points worse than the prior-year quarter. Operating margin was 40.7%, 50 basis points better than the prior-year quarter. Net margin was 28.7%, 170 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $580.4 million. On the bottom line, the average EPS estimate is $3.98.
Next year's average estimate for revenue is $2.52 billion. The average EPS estimate is $17.47.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,171 members out of 4,393 rating the stock outperform, and 222 members rating it underperform. Among 1,246 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,192 give Intuitive Surgical a green thumbs-up, and 54 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Intuitive Surgical is outperform, with an average price target of $575.85.
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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 recommends Intuitive Surgical. The Motley Fool owns 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.