Intuitive Surgical Q3'24 Earnings Preview

Earnings and Revenue Expectations - Intuitive Surgical is expected to report Q3 2024 revenues of $2 billion and adjusted earnings of$ 1.60 per share, slightly below consensus estimates [1] - The company's revenue growth is driven by increased procedure volume and placements of the new da Vinci 5 surgical platform [1] Trends Driving Q3 Results - Intuitive Surgical benefits from expanding its installed base, leading to growth in recurring revenues such as consumables [2] - Global da Vinci procedure volume is projected to grow 15.5%-17% in 2024, driving consumables and services revenue [2] - Operating margin is expected to see slight growth, bolstering the company's bottom line [2] Previous Quarter Performance - Q2 revenue was $2.0 billion, reflecting a 6% year-over-year growth, driven by a 17% rise in worldwide da Vinci procedure volume [3] - The company placed 341 da Vinci systems in Q2, including 70 da Vinci 5 systems, increasing the total installed base by 14% year-over-year to 9,203 systems [3] - Operating margin expanded by 340 basis points to 28.2% in Q2, with adjusted earnings of$ 1.78, a 25% increase over the prior-year quarter [3] Stock Performance and Valuation - ISRG stock has appreciated 45% year-to-date, outperforming the broader markets [4] - The stock is estimated to be valued at $462 per share, slightly below the current market price of$ 480, based on a 20x P/S multiple [4] - ISRG stock has shown more volatile annual returns compared to the S&P 500, while the Trefis High Quality Portfolio has consistently outperformed with less volatility [4] Peer Comparisons - Intuitive Surgical's valuation and performance can be compared with peers across industries using metrics provided by Trefis [5]