Market Cap and Growth Potential - Companies with market caps below $1 trillion but with plausible chances of reaching that milestone could deliver excellent returns to long-term investors [1] - Intuitive Surgical currently has a market cap of $215 billion and would need a compound annual growth rate of 10 8% to reach $1 trillion by 2040 [2] Industry Leadership and Technology - Robotic-assisted surgeries offer benefits such as less bleeding, less scarring, faster recoveries, and shorter hospital stays compared to traditional open surgeries [3] - Intuitive Surgical's da Vinci system is the market leader in robotic-assisted surgical equipment with a 57% market share and an installed base of 9,539 systems as of Q3 2024, a 15% year-over-year increase [4] Growth Opportunities - Less than 5% of eligible surgeries were performed robotically as of early 2023, but this percentage could reasonably rise to 20%, representing a quadrupling of the business even if the total number of surgeries remains static [6] - The aging global population further supports long-term growth potential for robotic-assisted surgeries [6] Competitive Advantages - Intuitive Surgical has a first-mover advantage, having already developed and gained regulatory clearance for its devices, unlike competitors such as Johnson & Johnson and Medtronic [8] - High switching costs for hospitals due to significant investments in da Vinci systems and staff training create a strong moat for the company [9] - The company is an innovator, making strides in artificial intelligence and continuously improving its da Vinci system, which helps maintain its leadership position [10] Historical Performance and Future Outlook - Intuitive Surgical's compound annual growth rate over the past 25 years has been more than double what it needs to achieve to become a trillion-dollar stock by 2040 [12] - The company possesses qualities such as a strong moat, strong growth avenues, and industry leadership, making it an excellent long-term investment in the healthcare sector [12]

Shares of Intuitive Surgical (ISRG -3.58%) were pulling back today as a strong fourth-quarter earnings report didn't seem to be enough to justify the medical device maker's lofty valuation. Its guidance for 2025 was also slightly below estimates, which can often trigger a sell-off for growth stocks.As of 10:20 a.m. ET on Friday, the stock was down 3.9% on the news. Intuitive Surgical delivers strong resultsLike clockwork, the maker of the da Vinci surgical robots delivered another strong round of growth up ...

Core Viewpoint - Intuitive Surgical reported strong fourth-quarter 2024 results, with adjusted earnings per share (EPS) of $2.21, exceeding estimates and showing significant year-over-year growth [1][10]. Revenue Details - The company achieved revenues of $2.41 billion, reflecting a 24.9% increase year over year and aligning with consensus estimates [2]. - Revenue growth was driven by an increase in installed systems and a rise in da Vinci procedure volume [11]. Segmental Details - **Instruments & Accessories**: Revenues reached $1.41 billion, up 23.7% year over year, supported by an 18% increase in da Vinci procedure volume and significant growth in Ion and SP procedures [3]. - **Systems**: This segment generated $655 million in revenue, a 36.5% year-over-year increase, attributed to higher average selling prices and a decrease in leased systems [4]. - **Services**: Revenues amounted to $347.4 million, marking a 14.1% increase from the previous year [5]. Margins - Adjusted gross profit was $1.68 billion, up 28% year over year, with a gross margin of 69.5%, an increase of approximately 150 basis points [6]. - Adjusted operating income totaled $927.7 million, reflecting a 49.4% year-over-year increase, with an operating margin of 38.4%, up approximately 620 basis points [7]. Financial Position - At the end of the fourth quarter, the company had cash, cash equivalents, and investments totaling $8.83 billion, down from $9.31 billion in the previous quarter [8]. - Total assets increased to $18.74 billion from $17.74 billion a year ago [8]. Market Performance - Despite strong quarterly results, the stock declined by 2.2% in after-hours trading, likely due to prior anticipation of results [10]. - Over the past six months, Intuitive Surgical's shares have risen by 31.5%, outperforming the industry growth of 3.9% and the S&P 500 Index's 12.7% increase [14]. Future Outlook - The company plans to open new manufacturing facilities for da Vinci 5 and Ion systems in 2025, which is expected to enhance future growth [12]. - However, a slowdown in bariatric procedures and a gradual decline in revenues per procedure for Instruments & Accessories are anticipated due to the rise of GLP-1 medications [13].

Financial Data and Key Metrics - No specific financial data or key metrics changes mentioned in the provided content [1][2][3] Business Line Data and Key Metrics - No specific business line data or key metrics changes mentioned in the provided content [1][2][3] Market Data and Key Metrics - No specific market data or key metrics changes mentioned in the provided content [1][2][3] Company Strategy and Industry Competition - No specific company strategy or industry competition details mentioned in the provided content [1][2][3] Management Commentary on Operating Environment and Future Outlook - No specific management commentary on the operating environment or future outlook mentioned in the provided content [1][2][3] Other Important Information - Dan Connolly will be joining Intuitive as VP and Head of Investor Relations in early February, bringing 18 years of experience from a global investment manager and active following of surgical robotics since 2008 [2] - Comments on the call may contain forward-looking statements, and actual results may differ materially from those expressed or implied [3] Q&A Session - No Q&A session details provided in the content [1][2][3]

Financial Performance - Revenue for the quarter ended December 2024 was $2.41 billion, a 25.2% year-over-year increase [1] - EPS for the quarter was $2.21, compared to $1.60 a year ago, representing a 38.1% increase [1] - Revenue matched the Zacks Consensus Estimate of $2.41 billion, with a surprise of -0.02% [1] - EPS exceeded the consensus estimate of $1.77 by 24.86% [1] Stock Performance - Shares of Intuitive Surgical returned +13.7% over the past month, outperforming the Zacks S&P 500 composite's +2.7% change [3] - The stock currently has a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3] Key Metrics - Da Vinci Surgical System Installed Base: 9,902, slightly below the 9,912 average estimate [4] - Total System Units Placed - Total Company: 493, exceeding the 434 average estimate [4] - Total System Units Placed - United States: 284, surpassing the 208 average estimate [4] - Total System Units Placed - Outside of the United States: 209, slightly above the 207 average estimate [4] Revenue Breakdown - Revenue- Product (Instruments and accessories and Systems): $2.07 billion, a 27.2% year-over-year increase, exceeding the $1.85 billion estimate [4] - Revenue- Services: $347.40 million, a 14.1% year-over-year increase, slightly above the $345.32 million estimate [4] - Revenue- Systems: $654.60 million, a 36.3% year-over-year increase, surpassing the $504.39 million estimate [4] - Revenue- Instruments and accessories: $1.41 billion, a 23.4% year-over-year increase, exceeding the $1.35 billion estimate [4]

Earnings Performance - Intuitive Surgical reported quarterly earnings of $2 21 per share, beating the Zacks Consensus Estimate of $1 77 per share, representing a 24 86% earnings surprise [1] - The company's earnings per share (EPS) increased from $1 60 per share a year ago, with adjustments for non-recurring items [1] - Over the last four quarters, the company has surpassed consensus EPS estimates four times [2] Revenue Performance - Intuitive Surgical posted revenues of $2 41 billion for the quarter ended December 2024, missing the Zacks Consensus Estimate by 0 02% [2] - Year-over-year revenues increased from $1 93 billion, and the company has topped consensus revenue estimates three times over the last four quarters [2] Stock Performance and Market Comparison - Intuitive Surgical shares have gained approximately 17% since the beginning of the year, outperforming the S&P 500's gain of 3 5% [3] - The stock's immediate price movement sustainability will depend on management's commentary during the earnings call [3] Earnings Outlook and Estimate Revisions - The current consensus EPS estimate for the coming quarter is $1 78 on $2 2 billion in revenues, and $7 87 on $9 55 billion in revenues for the current fiscal year [7] - The estimate revisions trend for Intuitive Surgical is mixed, translating into a Zacks Rank 3 (Hold), indicating expected market-aligned performance [6] Industry Context - Intuitive Surgical belongs to the Zacks Medical - Instruments industry, which is currently in the top 26% of the 250 plus Zacks industries [8] - The top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [8] Peer Comparison - Glaukos, another company in the Medical - Instruments industry, is expected to post a quarterly loss of $0 43 per share, representing a year-over-year improvement of 31 8% [9] - Glaukos' revenues are expected to be $100 75 million, up 22 3% from the year-ago quarter [9]

Earnings Performance - Intuitive Surgical reported Q4 revenue of $2 41 billion, a 25% YoY increase, surpassing analyst consensus [1] - Q4 earnings were $686 million, or $1 88 per share, up from $606 million, or $1 69 per share, a year ago, beating expectations [1] Procedure and System Growth - Procedures performed with da Vinci surgical devices increased 18% YoY [2] - The company installed 493 da Vinci systems in Q4, compared to 415 a year ago [2] Future Outlook - The company expects da Vinci procedures to grow 13% to 16% in 2024 [3] - Adjusted gross profit margin is expected to decline by 1 to 2 percentage points, excluding potential new tariffs which could have a material impact [3] Stock Performance - Intuitive Surgical shares fluctuated slightly in extended trading after the earnings release [4] - The stock closed at an all-time high the previous day and has gained approximately 62% over the past year [4]

Intuitive Surgical (ISRG) stock skidded late Thursday despite beating profit expectations following a strong sales preannouncement that sent shares on a five-day sprint. During the December quarter, the robotic surgery giant earned an adjusted $2.21 per share, easily beat forecasts for $1.79 a share, according to FactSet. The rest of Intuitive Surgical's report lined up with the preannouncement on Jan. 15 that sent Intuitive Surgical stock flying 7.7%.But in after-hours trades on today's stock market, share ...

Shares of robotic surgery pioneer Intuitive Surgical (ISRG -0.29%) have been soaring lately. A preliminary look at sales results from the fourth quarter of 2024 suggests its business is on the right track.Intuitive Surgical's recent performance and forward outlook are outstanding, and investors have noticed. Shares of the well-established medical technology business rose 62% during the 12-month period that ended Jan. 22, 2025.Is it still a good time to buy Intuitive Surgical, or has it risen too far already ...

Revenue Growth - Total revenue for Q4 2024 increased by 25% to $2,413.5 million compared to $1,928.3 million in Q4 2023[2] - Instruments and accessories revenue grew by 23% to $1,411.5 million in Q4 2024 from $1,143.7 million in Q4 2023[2] - Recurring revenue accounted for 80% of total revenue in Q4 2024, slightly down from 82% in Q4 2023[2] System Placements - Da Vinci Surgical System placements in the US increased by 36% to 284 units in Q4 2024 from 209 units in Q4 2023[2] - Da Vinci SP Systems placements surged by 58% to 30 units in Q4 2024 from 19 units in Q4 2023[2] - Ion System placements rose by 57% to 69 units in Q4 2024 from 44 units in Q4 2023[2] - The installed base of Da Vinci Surgical Systems increased by 15% to 9,902 units in 2024 from 8,606 units in 2023[2] - Average selling price of systems increased by 12% to $1.59 million in Q4 2024 from $1.42 million in Q4 2023[2] Procedure Growth - Total worldwide procedures increased by 17% to 2,683 thousand in 2024 from 2,286 thousand in 2023[4] - General Surgery procedures outside the US grew by 35% to 254 thousand in 2024 from 188 thousand in 2023[4]