On Oct. 26, Intuitive Surgical (NASDAQ:ISRG) released third-quarter earnings for the period ending Sept. 30.

  • Revenues exceeded analyst estimates by 9.2% while EPS exceeded the estimates by $0.04.
  • Revenues increased 57.4% because of increased sales across all segments.
  • EPS declined 18.2% because of falling margins and higher taxes paid.
  • Operating margin declined 772 basis points because of increases in SG&A and R&D.
  • Cash, cash equivalents, and investments increased 54.3%.

(Figures in thousands, except per-share data)

Income Statement Highlights

Avg. Est.

Q3 2006

Q3 2005

Change

Sales

$87,767

$95.8

$60.9

57.4%

Net Profit

--

$17.3

$20.7

(16.7%)

EPS

$0.41

$0.45

$0.55

(18.2%)

Diluted Shares

--

38.2

38.0

0.5%



Get back to basics with a look at the income statement.

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

64.94%

69.19%

(4.25)

Operating Margin

26.79%

34.51%

(7.72)

Net Margin

18.01%

34.04%

(16.03)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2006

Q3 2005

Change

Cash + ST Invest.

$292.3

$189.4

54.3%

Accounts Rec.

$71.7

$43.8

63.7%

Inventory

$22.3

$12.2

82.8%



Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

$36.2

$7.5

382.7%

Long-Term Debt

$0

$0

0%



Learn the ways of the balance sheet.

Related Companies:

  • Boston Scientific (NYSE:BSX)
  • Spectranetics (NASDAQ:SPNC)
  • Medtronic (NYSE:MDT)

Related Foolishness:

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