Intuitive Surgical (Nasdaq: ISRG) reported earnings on Jan. 22. Here are the numbers you need to know.
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.
Revenue details
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 details
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.
Margin details
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.
Looking ahead
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.
Investor sentiment
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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