Intuitive Surgical (ISRG) Q2 Earnings Beat, Procedures Robust

Earnings Performance - Adjusted EPS for Q2 2024 was $1.78, beating the Zacks Consensus Estimate by 16.3$1.46, up 23.7% YoY [1] Revenue Performance - Q2 2024 revenues reached $2.01 billion, a 14$1.24 billion, a 16% YoY increase [3] - Growth was driven by a 17% increase in da Vinci procedure volume and 82% growth in Ion procedures [3] - Higher pricing for procedures also contributed to growth, partially offset by unfavorable customer buying patterns [3] Systems - Segment revenues reached $448 million, a 14$630.8 million, a 10.6% YoY increase [4] Margins - Adjusted gross profit was $14.1 billion, a 16.9$525.3 million, up 13.1% YoY [5] - Research and development expenses totaled $280.1 million, up 14.6$754.1 million, a 22% YoY increase, with operating margin at 37.5%, up 230 bps YoY [5] Financial Position - Cash, cash equivalents, and investments totaled $7.68 billion at the end of Q2, up from$7.32 billion in the previous quarter [6] - Total assets increased to $16.65 billion from$15.83 billion in the prior quarter [6] Market Performance - Shares of Intuitive Surgical rose 6.7% in after-hours trading on June 18 [7] - Year-to-date, shares have risen 31.8%, outperforming the industry's 5.2% gain and the S&P 500's 16.1% gain [8] Industry Comparison - Globus Medical (GMED) has a Zacks Rank 1, with shares rising 35% year-to-date and an estimated long-term growth rate of 12.7% [9] - Hologic (HOLX) has a Zacks Rank 2, with shares rising 8.7% year-to-date and an estimated long-term growth rate of 7.4% [9] - Masimo (MASI) has a Zacks Rank 2, with shares losing 8.3% year-to-date and an estimated growth rate of 9.3% for 2025 [10]