Intuitive(US:ISRG) The Motley Foolยท2025-01-28 15:15Core Viewpoint - Intuitive Surgical has demonstrated significant long-term growth, with a stock increase of over 950% in the past decade and more than 60% in the last year, driven by strong revenue growth and the launch of new products [1]. Revenue Performance - In the fourth quarter, Intuitive Surgical's revenue surged 25% year over year to $2.41 billion, with adjusted earnings per share (EPS) rising 38% to $2.21, exceeding analyst expectations [2]. - Revenue growth has accelerated for three consecutive quarters, with instrument and accessory sales increasing by 23% to $1.41 billion and procedure volumes rising by 18% [2]. Product Launch and Market Expansion - The company installed 493 da Vinci surgical systems in the fourth quarter, increasing its total installed base by 15% year over year to 9,902 systems, including 174 new da Vinci 5 systems [3]. - Intuitive Surgical has begun leasing its machines to hospitals, which helps with financing and expands the market for its devices [4]. Utilization and Future Projections - For the full year, the company placed 1,430 multiport systems and 271 Ion systems, with utilization rates for multiport, Ion, and SP systems increasing by 3%, 13%, and 12% respectively [5]. - Intuitive forecasts a 13% to 16% increase in worldwide da Vinci procedures in 2025, with expected gross margins of 67% to 68% [8]. Financial Position - The company ended the quarter with $8.8 billion in cash and no debt, planning to acquire its distributor servicing several European countries [7]. Product Features and Pricing - The new da Vinci 5 system has a 30% higher average selling price than its predecessor, with features designed to save surgeons time and potentially increase procedure volumes [11][12]. Valuation Considerations - Intuitive Surgical's stock currently trades at a forward price-to-earnings (P/E) ratio of nearly 74 based on 2025 estimates, which is considered high from a historical perspective [13].