Intuitive Surgical scheduled to report earnings after Thursday’s close. The stock hit a record high of $614.72/share on Wednesday. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:
Earnings Preview
The company is expected to report a gain of $1.77/share on $2.21 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $2.02/share. The Whisper number is the Street’s unofficial view on earnings.
A Closer Look At The Fundamentals
The company has managed to grow its earnings over the last few years. In 2017, the company earned $3.03, and in 2023 the company earned $5.71, which is impressive. Additionally, the company is expected to earn $6.91 in 2024 and in 2025, earnings are expected to grow to $7.93! The company sports a price to earnings (P/E) ratio of 90 which is 3.6x the S&P 500.
A Closer Look At The Technicals
Technically, the stock just hit a new all-time high which is encouraging. The stock is also trading above all its important moving averages, which is also an encouraging sign. In the short-term, the stock is getting extended (meaning overbought) and can easily pullback if earnings fall short of expectations. Conversely, if the stock gaps up and reports another very strong quarter that will be very bullish and can easily drive the stock higher.
Company Profile
Intuitive Surgical, Inc. develops, manufactures, and markets products that enable physicians and healthcare providers to enhance the quality of and access to minimally invasive care in the United States and internationally.
The company offers the da Vinci Surgical System that enables complex surgery using a minimally invasive approach; and Ion endoluminal system, which extends its commercial offerings beyond surgery into diagnostic procedures enabling minimally invasive biopsies in the lung.
It also provides a suite of stapling, energy, and core instrumentation for its multi-port da Vinci surgical systems; progressive learning pathways to support the use of its technology; infrastructure of service and support specialists, a complement of services to its customers, including installation, repair, maintenance, 24/7 technical support, and proactive system health monitoring; and integrated digital capabilities providing connected offerings, streamlining performance for hospitals with program-enhancing insights.
The company sells its products through direct sales organizations, such as capital and clinical sales teams. It has a collaboration agreement with FluoGuide A/S for head & neck cancer. The company was incorporated in 1995 and is headquartered in Sunnyvale, California.
Pay Attention To How The Stock Reacts To The News
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
Disclosure: The stock has been featured on FindLeadingStocks.com