Intuitive Surgical, Inc. Second Quarter Earnings Preview

S&P 500 (NYSE:SPY) component Intuitive Surgical, Inc. (NASDAQ:ISRG) will unveil its latest earnings on Tuesday, July 19, 2011. Intuitive Surgical, Inc. designs and manufactures da Vinci Surgical Systems, EndoWrist instruments and other surgical accessories. Navigate Markets in July with Top Insights and Winning Stock Ideas>>

Intuitive Surgical, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $2.71 per share, a rise of 23.7% 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 $2.72. Between one and three months ago, the average estimate moved down, but it has been unchanged at $2.71 during the last month. For the year, analysts are projecting profit of $11.17 per share, a rise of 18% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 10 cents, reporting net income of $2.59 per share against a mean estimate of profit of $2.49 per share.

Savvy Investing Tip: Our CHEAT SHEET investing framework recommends only stocks with two straight quarters of earnings growth. Learn More >>

Wall St. Revenue Expectations: On average, analysts predict $409.1 million in revenue this quarter, a rise of 16.7% from the year ago quarter. Analysts are forecasting total revenue of $1.67 billion for the year, a rise of 18.4% from last year’s revenue of $1.41 billion.

Analyst Ratings: Analysts seem relatively indifferent about Intuitive Surgical with nine of 15 analysts surveyed maintaining a hold rating.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 24%, 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% while it rose 56.3% in the fourth quarter of the last fiscal year and 34.2% in the third quarter of the last fiscal year.

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).

Stock Price Performance: During June 14, 2011 to July 13, 2011, the stock price had risen $12.85 (3.7%) from $346.55 to $359.40. The stock price saw one of its best stretches over the last year between December 20, 2010, and December 30, 2010, when shares rose for eight-straight days, rising 5.3% (+$13.59) over that span. Shares have been on a negative streak of late, closing down every day between July 12, 2011 and July 13, 2011. Shares are up $101.65 (+39.4%) year to date.

(Source: Xignite Financials)

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