Filed Under: ,
Tickers in this Article: ISRG
Intuitive Surgical (Nasdaq:ISRG) announced its results for the third quarter on October 16, 2012. Intuitive Surgical designs and manufactures da Vinci Surgical Systems, EndoWrist instruments and other surgical accessories.

Earnings season is important to investors because it shows how much profit is left in the company's hand after deducting costs from revenue. SEE: How To Decode A Company's Earnings Reports

The Numbers: Intuitive Surgical managed to exceed estimates with stronger-than-expected EPS and revenues. The company reported $4.46 per share versus the $3.52 per share estimate and revenues of $537.8 million versus the $522.9 million estimate. EPS rose 46.2% while revenue climbed 20.4% from the same period last year. Intuitive Surgical has averaged revenue growth of 26.3% over the past five quarters. The company's net income for the quarter rose 49.5% to $183 million. Last quarter marked the third in a row of rising net income.

Management Quote: Dr. Gary Guthart, President and CEO of Intuitive Surgical, said, "Our third quarter highlighted both market strengths and significant headwinds. Procedures came in below our expectations, driven by conditions in Europe and changes in prostate cancer detection and treatment. On the positive side, acceptance of daVinci general and gynecologic surgery continues to grow."

A Look Back: Net income has increased 37.1% year-over-year on average across the last five quarters. The biggest gain came in the most recent quarter, when income climbed 49.5% from the year-earlier quarter.

Looking Ahead: Expectations for the company's next-quarter performance are more favorable than they were a month ago. The average estimate for the fourth quarter is now at $3.61 per share, up from $3.61. When analyst increase earnings estimates investors can assume business has been stronger than first thought and is an encouraging sign for investors. Over the past three months, the average estimate for the fiscal year has climbed from $14.67 per to share to $14.72.

comments powered by Disqus

Trading Center