Intuitive Surgical Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Intuitive Surgical (NASDAQ:ISRG) will unveil its latest earnings tomorrow, Tuesday, January 22, 2013. Intuitive Surgical designs and manufactures da Vinci Surgical Systems, EndoWrist instruments and other surgical accessories.

Intuitive Surgical Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $4.04 per share, a rise of 7.7% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $4.09. Between one and three months ago, the average estimate moved down. It has been unchanged at $4.04 during the last month. Analysts are projecting profit to rise by 20.5% compared to last year’s $14.85.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 98 cents, reporting net income of $4.46 per share against a mean estimate of profit of $3.48 per share.

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A Look Back: In the third quarter, profit rose 49.8% to $183.3 million ($4.46 a share) from $122.4 million ($3.05 a share) the year earlier, exceeding analyst expectations. Revenue rose 20.4% to $537.8 million from $446.7 million.

Here’s how Intuitive Surgical traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

ISRG

Wall St. Revenue Expectations: On average, analysts predict $584.2 million in revenue this quarter, a rise of 17.6% from the year-ago quarter. Analysts are forecasting total revenue of $2.15 billion for the year, a rise of 22.2% from last year’s revenue of $1.76 billion.

Analyst Ratings: With seven analysts rating the stock a buy, none rating it a sell and five rating the stock a hold, there are indications of a bullish stance by analysts. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

Key Stats:

With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 25.4% over the last four quarters.

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 37.8% in the first quarter and 31.9% in the second quarter before increasing again in the third quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 7.21 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)