Intuitive Surgical is set to report its Q2 2024 results, with expected revenues of $2 billion and adjusted earnings of $1.55 per share. The company has seen strong gains in its stock performance over the past few years, but has also experienced fluctuations in returns. In 2023, ISRG underperformed the S&P 500, raising questions about its ability to outperform in the current uncertain macroeconomic environment.
In the previous quarter, Intuitive Surgical saw revenue growth driven by an increase in da Vinci procedure volume and placements of its new da Vinci 5 surgical platform. The company’s operating margin also expanded, reflecting a strong performance. Looking ahead, Intuitive Surgical is expected to benefit from continued growth in procedure volume and placements of its new systems, leading to recurring revenues from consumables.
Despite a positive outlook for the company in Q2, the run-up in ISRG stock this year has left little room for growth in the near term. The stock now trades at a higher valuation multiple compared to the past three years, which could limit further upside potential. However, Intuitive Surgical’s solid fundamentals and financial position have contributed to its higher valuation multiple.
It is important to consider how Intuitive Surgical’s peers are performing on key metrics. Comparing the company to its industry peers can provide valuable insights into its position in the market and potential for growth. Investors may also want to explore other investment opportunities in different industries through peer comparisons to make informed decisions.
Overall, Intuitive Surgical is expected to navigate well in Q2, benefiting from growth in procedure volume and placements of its new surgical platform. However, with the stock already trading at a higher valuation multiple, further upside may be limited in the near term. Investors should closely monitor the company’s performance and industry trends to make informed investment decisions.
