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Intuitive Surgical, in the Spotlight Soon

By Seth Jayson – Updated Apr 10, 2017 at 12:50PM

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Checking expectations

Intuitive Surgical (Nasdaq: ISRG) is expected to report Q2 earnings on July 19. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Intuitive Surgical's revenues will expand 9.8% and EPS will expand 8.3%.

The average estimate for revenue is $589.2 million. On the bottom line, the average EPS estimate is $4.06.

Revenue details
Last quarter, Intuitive Surgical reported revenue of $611.4 million. GAAP reported sales were 23% higher than the prior-year quarter's $495.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $4.56. GAAP EPS of $4.56 for Q1 were 30% higher than the prior-year quarter's $3.50 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 71.0%, 90 basis points worse than the prior-year quarter. Operating margin was 41.1%, 210 basis points better than the prior-year quarter. Net margin was 30.9%, 190 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $2.48 billion. The average EPS estimate is $17.33.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,241 members out of 4,473 rating the stock outperform, and 232 members rating it underperform. Among 1,150 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,097 give Intuitive Surgical a green thumbs-up, and 53 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 $595.27.

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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

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Stocks Mentioned

Intuitive Surgical, Inc. Stock Quote
Intuitive Surgical, Inc.
$201.54 (4.23%) $8.18

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