Intuitive Surgical Shares Drop After Missed $1.8B Revenue Consensus
January 12, 2023
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Intuitive Surgical Stock Intrinsic Value – Intuitive Surgical ($NASDAQ:ISRG), a medical device company that specializes in robot-assisted surgery, saw its share price drop after the announcement of their Q4 preliminary revenue estimates. Intuitive Surgical has seen a steady increase in its share price over the past few years, but the miss of their latest estimates has caused investors to take a step back. The company had been consistently meeting or exceeding expectations for the past few years, so this recent miss has been seen as a setback for the company. The miss of the $1.8B revenue consensus was significantly larger than many analysts had anticipated, which has caused some to question the health of Intuitive Surgical’s business. The company has attributed their recent miss to lower-than-expected sales of their da Vinci robotic surgical systems.
Intuitive Surgical’s products have been a mainstay in many operating rooms for the past few years, and their products have become increasingly relied upon by surgeons around the world. Despite this, their revenues have taken a hit due to the pandemic-related slowdown in elective surgeries, which has resulted in lower demand for their products. They are expecting to return to their pre-pandemic growth rate as elective surgeries resume and new contracts are signed. In the meantime, investors should remain cautious when it comes to Intuitive Surgical’s stock, as the long-term impact of the pandemic on the company is still yet to be seen.
Stock Price
On Wednesday, Intuitive Surgical shares dropped significantly after missing the $1.8 billion revenue consensus. The stock opened at $261.4, but closed at $260.0, a decrease of 4.2% from its prior closing price of $271.4. The news caused a ripple effect in the stock market, with other medical device companies also seeing losses. Analysts have recently been bearish on Intuitive Surgical due to the company’s relatively high valuation and slow growth rate.
With the news of Intuitive Surgical’s missed revenue target, investors were quick to take action and sell off their stock. While this may be a short-term setback for the company, analysts are hopeful that Intuitive Surgical will be able to rebound with strong future earnings reports. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Intuitive Surgical. More…
| Total Revenues | Net Income | Net Margin |
| 6.12k | 1.38k | 22.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Intuitive Surgical. More…
| Operations | Investing | Financing |
| 1.62k | 155 | -1.59k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Intuitive Surgical. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 13.26k | 1.69k | 32.59 |
Key Ratios Snapshot
Some of the financial key ratios for Intuitive Surgical are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.9% | 8.1% | 27.1% |
| FCF Margin | ROE | ROA |
| 17.6% | 8.8% | 7.8% |
VI Analysis – Intuitive Surgical Stock Intrinsic Value
The company has recently been in the news because of the potential of its products and the associated technology. With the help of VI app, it is easy to analyse the fundamentals of Intuitive Surgical Inc., and understand its long term potential. The fair value of Intuitive Surgical Inc. is estimated to be around $298.6, calculated by VI Line. At present, Intuitive Surgical Inc. stock is trading at $260.0, which is a fair price but still undervalued by 13%. This means that there is still potential upside for investors who are looking to buy into the company. The company’s financials are strong, with good cash flows, low debt, and good return on equity. It has also been expanding into new markets and its products have been gaining traction in the healthcare industry. The company has a strong market position and its products are backed by a large customer base. Overall, Intuitive Surgical Inc. is a good bet for long term investors looking for a reliable and established company to invest in. The company has strong fundamentals, good cash flows and a strong market position, all of which make it a good candidate for long term investments. More…
VI Peers
The company’s da Vinci surgical system consists of a surgeon’s console, a patient-side cart and a vision system. The company’s competitors in the robotic surgery market include Stryker Corp, Medtronic PLC, Becton, Dickinson and Co.
– Stryker Corp ($NYSE:SYK)
With a market capitalization of $84.98 billion as of 2022, Stryker Corporation is one of the world’s leading medical technology companies. Headquartered in Kalamazoo, Michigan, the company offers a broad range of products and services in orthopedics, medical and surgical, and neurotechnology and spine that help improve patient care and quality of life. The company’s products include implants used in hip, knee and shoulder replacements, as well as instrumentation and software used in operating rooms and for patient rehabilitation. In addition, Stryker offers a wide range of products and services for minimally invasive surgery, including robotic-assisted surgery systems. The company’s return on equity was 10.79% as of 2022.
– Medtronic PLC ($NYSE:MDT)
Medtronic PLC is a medical technology company that develops and produces a variety of medical devices and software products. The company has a market capitalization of 112.31 billion as of 2022 and a return on equity of 7.49%. Medtronic PLC’s products are used in a wide range of medical procedures, including cardiovascular, neurological, and orthopedic procedures. The company’s products are sold in over 150 countries around the world.
– Becton, Dickinson and Co ($NYSE:BDX)
Becton, Dickinson and Co is a medical technology company that manufactures and sells medical devices, laboratory equipment, and diagnostic products. The company has a market cap of 64.37B as of 2022 and a return on equity of 6.42%. The company’s products are used in a variety of medical procedures, including blood transfusions, IV start kits, and diabetes care.
Summary
Intuitive Surgical is an American medical robotics company that develops, manufactures and markets robotic surgical systems. Its stock price dropped significantly on the same day when it missed its $1.8 billion revenue consensus as investors feared a potential slowdown in the company’s growth. Analysts suggest investors should closely monitor the company’s financial performance, particularly with respect to recurring revenues and sales of upgraded systems.
Investors should also pay attention to the company’s competitive landscape, as many of its rivals are rapidly developing their own robotic surgical products. The long-term outlook for Intuitive Surgical remains positive, with a strong focus on innovation and strong customer support.
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