Skip to main content

ISRG STOCK WRITE UP


ISRG (INTUITIVE SURGICAL INC)

  • P/E: 48
  • GAAP DILUTED YEAR-OVER-YEAR EPS GROWTH LAST QUARTER: $1.13
  • SECTOR: HEALTH TECHNOLOGY
  • ASSETS-LIABILITIES: 7.05
  • DIVIDEND: none

ISRG is the ticker for Intuitive Surgical Inc, a company endeavoring in the manufacture and distribution of robotic surgical devices. The company recently gained FDA approval for a lower-cost device. They have a clean balance sheet with a history of upside surprises against earnings expectations, and report again 7/20/17.
Revenues increased nearly 14%, while EPS increased 32% compared to the Q1 '16 results. While liabilities decreased on a year-over-year basis, assets decreased by a larger margin. R&D spending increased 36%, and administrative costs rose 16%. Taxes were cut in half, although the revenues increased, due to modified accounting principles, and tax benefits for the employee share-based compensation.. The ratio of assets-liabilities decreased from 9.14 to 7.05, which is still a considerable margin. ISRG increased their share buyback by a multiple of 250 on a year-over-year basis, and divested investment assets to free cash for employee share compensation, as well.
Some health professionals have stated that Intuitive Surgical's Davinci surgery system is not beneficial, as a surgeon still must control the device's robotic arms. Davinci is most useful for minimally invasive gynecological and urological procedures which utilize robotic arms to avoid human error. For surgeries in which the doctor is capable of performing the operation reasonably manually, there is no practical application for a $2 million device to replicate the movements via remote control. A study showed that minimally invasive urological procedures performed with Davinci led to reduced recovery time, with a similarly favorable result. Increased demand for the product's use in gynecological procedures, general surgery, urological operations, and kidney cancer applications led to a nearly 21% increase in global Davinci unit shipments.
Gary Guthart has been the company's CEO since 2010. He has been with the company since 1996, he holds a BS and PhD, and worked with computer-assisted surgery at Stanford Research Institute prior to joining ISRG. The Davinci X surgical system received FDA clearance 5/31/17. Guthart states that the Davinci X is designed to provide services at a lower price point. This will provide an opportunity to provide services to clients who may not benefit enough from the system to justify a $2 million expenditure.
Although there are no direct competitors which can be utilized for stock valuation comparison, it is important to note that Medtronics, Alphabet Inc, and Johnson and Johnson all have connections with smaller surgical robotics companies. ISRG trades at a premium to the average S&P stock with a P/E of 48, but its growth rate is also above average at 14% revenue and 32% EPS growth. ISRG has beat wall street expectations in each of the last 8 quarters, propelling expectations higher with each quarterly report.







https://www.estimize.com/isrg

Labels:

Comments

Post a Comment

Popular posts from this blog

AMGN STOCK WRITE UP

AMGN P/E: 16.1 GAAP EPS Y-O-Y GROWTH LAST QUARTER: $.22 SECTOR: HEALTH TECHNOLOGY ASSETS-LIABILITIES: 1.62 DIVIDEND: 2.54% Amgen is a leading biotech company with a solid financial foundation. It has managed to reduce its spending on research and development while increasing revenue through its sales of established drugs such as Enbrel, and Prolia. The company has several rapidly growing drugs that are newer to the market, with many drugs in the company's pipeline. In its last quarter, Amgen posted 7.7% revenue growth with 7.5% net income growth. The company spent less, however, in the most recent quarter when compared with the comparable quarter from the prior year, on research and development. The reduction in operating margin came from an increased interest expense in the quarter. Although the company spent less on research and development, its revenue did increase. Amgen is continuing to innovate despite reduced research and development b...
Post a Comment
Read more

PXD STOCK WRITE UP

 PXD (PIONEER NATURAL RESOURCES) P/E: N/A GAAP DILUTED Y-O-Y EPS GROWTH LAST QUARTER: $.67 SECTOR: ENERGY MINERALS ASSETS-LIABILITIES: 1.58 DIVIDEND: .04% Pioneer Natural Resources has recently made the jaw-dropping switch from negative EPS to positive with its last quarter. Situated in the largest oil-producing region in the US, the company is utilizing its good fortune to produce profits. The company has a good balance sheet, a wealth of resources, and a business model which has afforded it growth. This last quarter does not mark the first occasion on which Pioneer has posted a profit. In 2014, and 2012, Pioneer posted a positive EPS for the full year. While the 2016 oil and gas revenues have grown from 2015, the 2014 and 2012 levels were higher. The company's revenue from oil and gas is largely based on market prices. In order to mitigate the market volatility, Pioneer has made efforts to reduce their cost of production, according to their earnin...
1 comment
Read more