Intuitive Surgical, Inc. Earnings Cheat Sheet: Profits Grow Once Again

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

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Intuitive Surgical Earnings Cheat Sheet for the Second Quarter

Results: Net income for the medical appliances and equipment company rose to $117.4 million ($2.91 per share) vs. $88.7 million ($2.19 per share) in the same quarter a year earlier. This marks a rise of 32.4% from the year earlier quarter.

Revenue: Rose 21.4% to $425.7 million from the year earlier quarter.

Actual vs. Wall St. Expectations: ISRG beat the mean analyst estimate of $2.71 per share. It beat the average revenue estimate of $410.4 million.

Quoting Management: Commenting on the announcement, Gary Guthart, President and CEO of Intuitive Surgical, said, “We are pleased with our second quarter procedures, revenue, and earnings growth. Our results reflect the continued adoption of da Vinci surgery across a broad range of procedures.”

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 23.5%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 34.6% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 22% and in the fourth quarter of the last fiscal year, the figure rose 56.3%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 10 cents in the first quarter, by 76 cents in the fourth quarter of the last fiscal year, and by 5 cents in the third quarter of the last fiscal year.

Gross margin shrank 1.2 percentage points to 72%. The contraction appeared to be driven by increased costs, which rose 26.8% from the year earlier quarter while revenue rose 21.4%.

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).

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(Source: Xignite Financials)