Intuitive Surgical Earnings: Here’s Why the Stock is Jamming Higher

Intuitive Surgical, Inc. (NASDAQ:ISRG) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up almost 6.49%.

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Intuitive Surgical, Inc. Earnings Cheat Sheet

Results: Net income increased 15.67% to $174.9 million ($4.25 per diluted share) in the quarter versus a net gain of $151.2 million in the year-earlier quarter.

Revenue: Rose 22.64% to $609.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Intuitive Surgical, Inc. reported adjusted net income of $4.25 per share. By that measure, the company beat the mean analyst estimate of $4.04. It beat the average revenue estimate of $584.36 million.

Major Driver:The growth in fourth quarter of 2012 systems revenue was driven by sales of 175 da Vinci Surgical Systems compared with sales of 152 systems during the same period last year. Fourth quarter of 2012 service revenue increased 20% to $91 million from $75 million during the fourth quarter of 2011, reflecting growth in the installed base of da Vinci Surgical Systems.

Key Stats:

Revenue increased 13.29% from $537.8 million in the previous quarter. Net income decreased 4.58% from $183.3 million in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $3.95 to a profit $4.02. For the current year, the average estimate has moved down from a profit of $14.87 to a profit of $14.84 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)