Earnings Reports To Watch: Intuitive Surgical, Inc. (NASDAQ:ISRG)

Intuitive Surgical, Inc. (NASDAQ:ISRG) reported earnings for the three months ended Mar2016 on April 19, 2016. The company earned $4.42 per share on revenue of $594.5M. Analysts had been modeling earning per share of $4.33 with $591.93M in revenue.

Intuitive Surgical, Inc. (ISRG) on April 19, 2016 announced financial results for the quarter ended March 31, 2016.

Q1 Highlights

• Worldwide da Vinci procedures grew nearly 17% compared with the first quarter of 2015, driven primarily by growth in U.S. general surgery procedures and worldwide urologic procedures.


• The Company shipped 110 da Vinci Surgical Systems, compared with 99 in the first quarter of 2015.


• First quarter 2016 revenue of $595 million grew approximately 12% compared with $532 million for the first quarter of 2015.


• First quarter 2016 non-GAAP net income was $170 million, or $4.42 per diluted share, compared with $135 million, or $3.57 per diluted share, for the first quarter of 2015.


• In March 2016, the Company received FDA 510(k) clearances in the U.S. for Single-Site instruments and the 30mm EndoWrist stapler products for the da Vinci Xi Surgical System.

Q1 Financial Summary

Gross profits, income from operations, net income, and net income per share are reported on a GAAP and non-GAAP basis. The non-GAAP measures are described below and are reconciled to the corresponding GAAP measures at the end of this release.

First quarter 2016 revenue was $595 million, an increase of approximately 12% compared with $532 million in the first quarter of 2015. Higher first quarter revenue was driven by growth in recurring instrument, accessory, and service revenue, and higher systems revenue.

First quarter 2016 instrument and accessory revenue increased by approximately 16% to $322 million, compared with $277 million for the first quarter of 2015, primarily driven by nearly 17% growth in da Vinci procedure volume. First quarter 2016 service revenue increased by approximately 9% to $125 million, compared with $114 million for the first quarter of 2015.

First quarter 2016 systems revenue increased by approximately 5% to $148 million, compared with $141 million for the first quarter of 2015. Intuitive Surgical shipped 110 da Vinci Surgical Systems in the first quarter of 2016, compared with 99 in the first quarter of 2015. A total of 19 of the first quarter 2016 da Vinci Surgical Systems were shipped under operating lease arrangements, compared with 9 during the first quarter of 2015.

Intuitive Surgical, Inc. earnings per share showed an increasing trend of 39.9% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 2325%.Analysts project EPS growth over the next 5 years at 13.73%. It has EPS annual growth over the past 5 fiscal years of 10.4% when sales grew 11. It reported 11.7% sales growth, and 37.7% EPS growth in the last quarter.

The stock is trading at $634.71, up 41.99% from 52-week low of $447. The stock trades down -3.08% from its peak of $654.88 and 6.55% above the consensus price target of $676.29. Its volume clocked up at 0.62 million shares which is higher than the average volume of 0.35 million shares. Its market capitalization currently stands at $24.23B.