Intuitive Surgical, Inc. Earnings Cheat Sheet: Double-Digit Growth Again

S&P 500 (NYSE:SPY) component Intuitive Surgical, Inc. (NASDAQ:ISRG) reported net income above Wall Street’s expectations for the third quarter. Intuitive Surgical designs and manufactures da Vinci Surgical Systems, EndoWrist instruments and other surgical accessories.

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Intuitive Surgical Earnings Cheat Sheet for the Third Quarter

Results: Net income for the medical appliances and equipment company rose to $122.4 million ($3.05 per share) vs. $86.6 million ($2.14 per share) in the same quarter a year earlier. This marks a rise of 41.3% from the year earlier quarter.

Revenue: Rose 29.7% to $446.7 million from the year earlier quarter.

Actual vs. Wall St. Expectations: ISRG beat the mean analyst estimate of $2.76 per share. It beat the average revenue estimate of $417.8 million.

Quoting Management: Dr. Gary Guthart, President and CEO of Intuitive Surgical, said, “We are pleased with the growth in da Vinci procedures and the performance of our team in the quarter.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 22.5%, with the biggest boost coming in the most recent quarter when revenue rose 29.7% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 32.4% and in the first quarter, the figure rose 22%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 20 cents in the second quarter, by 10 cents in the first quarter, and by 76 cents in the fourth quarter of the last fiscal year.

Gross margins expanded last quarter, rising 0.1 percentage point to 72.9% from the year earlier quarter. This snaps a streak of two consecutive quarters of shrinking margins.

Looking Forward: Expectations for the company’s next quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the fourth quarter has risen to $3.23 per share from $3.15. For the fiscal year, the average estimate has moved up from $11.17 a share to $11.48 over the last ninety days.

Competitors to Watch: Stryker Corporation (NYSE:SYK), Bovie Medical Corporation (AMEX:BVX), Synovis Life Tech., Inc. (NASDAQ:SYNO), CryoLife, Inc. (NYSE:CRY), Medtronic, Inc. (NYSE:MDT), Smith & Nephew plc (NYSE:SNN), Vision-Sciences, Inc. (NASDAQ:VSCI), CONMED Corporation (NASDAQ:CNMD), The Cooper Companies, Inc. (NYSE:COO), and OLYMPUS CORPORATION (OCPNY).

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(Source: Xignite Financials)