Intuitive Surgical (ISRG), maker of the da Vinci surgical robots, trades at about $382, some 36% below its 52-week high. Even so, you pay about 35.9 times trailing adjusted earnings. That is normalized net income with stock-based compensation added back, a basis meant to sit closer to the one ****** ysts forecast on, though the two are not defined identically. ****** ysts' forecasts run to 2027, the year Intuitive plans to start lowering what customers pay per use on some instruments.
The shares were trading about 11% lower the day after second-quarter results in July showed slower US procedure growth. US da Vinci procedures grew 12% in the second quarter, against 14% in the first. Management pointed to two likely causes, with the CFO noting that some customers say coverage changes are delaying deferrable procedures, alongside a little of the law of large numbers.
What the price still pays for is revenue growing faster than procedures. On the first-quarter call, the CFO credited that largely to da Vinci 5 and its higher pricing. More than half of the da Vinci systems Intuitive placed in the second quarter were da Vinci 5.
On ****** ysts' 2026 estimates, today's price is about 35.1 times earnings. On their 2027 estimates, it is about 31.4 times. The revenue forecast behind that looks modest: about 13.1% growth a year through 2027, against 20.7% growth over the past twelve months.
Consensus has earnings and revenue growing at a similar pace between 2026 and 2027, so margins hold roughly steady. Intuitive enters that stretch with an operating margin of 31.3% over the past twelve months, above its three-year average of 27.7%.
#intuitive #analysts #year #procedures
The shares were trading about 11% lower the day after second-quarter results in July showed slower US procedure growth. US da Vinci procedures grew 12% in the second quarter, against 14% in the first. Management pointed to two likely causes, with the CFO noting that some customers say coverage changes are delaying deferrable procedures, alongside a little of the law of large numbers.
What the price still pays for is revenue growing faster than procedures. On the first-quarter call, the CFO credited that largely to da Vinci 5 and its higher pricing. More than half of the da Vinci systems Intuitive placed in the second quarter were da Vinci 5.
On ****** ysts' 2026 estimates, today's price is about 35.1 times earnings. On their 2027 estimates, it is about 31.4 times. The revenue forecast behind that looks modest: about 13.1% growth a year through 2027, against 20.7% growth over the past twelve months.
Consensus has earnings and revenue growing at a similar pace between 2026 and 2027, so margins hold roughly steady. Intuitive enters that stretch with an operating margin of 31.3% over the past twelve months, above its three-year average of 27.7%.
#intuitive #analysts #year #procedures
3 days ago
