Intuitive Surgical Posts Q3 Earnings Beat, These Analysts Raise Forecasts On DV5 Uptake

Core Insights - Intuitive Surgical, Inc. reported strong third-quarter earnings, exceeding analyst expectations in both sales and earnings growth [1][2][3] Financial Performance - The company achieved third-quarter revenues of $2.04 billion, representing a 17$2 billion [3] - Earnings beat expectations by 12%, attributed to revenue drop-through and strong margins [2] - Adjusted operating margins were reported at 37.0%, significantly higher than the expected 33.3% [4] Growth Projections - Management raised the low end of their guidance for procedure volumes by 50 basis points to 16%-17%, with a projected 2.6 million procedures in 2024 [2][3] - The installed base growth rate reached 15.1%, positioning the company to approach 10,000 robots installed by the end of 2024 [2] - The company is experiencing post-launch growth momentum for the US da Vinci 5 (dv5) system, suggesting potential acceleration in 2025 [3] Analyst Ratings and Price Targets - RBC Capital Markets raised the price target from $525 to$555 while maintaining an Outperform rating [1] - Stifel increased its price target from $475 to$525, maintaining a Buy rating [1] - Goldman Sachs raised its price target from $583 to$604, reaffirming a Buy rating [1] - Piper Sandler lifted its price target from $495 to$538 while maintaining an Overweight rating [1] - Truist Securities reiterated a Buy rating with a price target of $570 [1] Market Reaction - Shares of Intuitive Surgical rose by 8.63$514.59 following the earnings report [5]