Shares of Intuitive Surgical (ISRG) are up 5% after the medical device manufacturer reported third-quarter financial results that beat Wall Street forecasts across the board.
The California-based company reported earnings per share (EPS) of $1.84, which was better than the consensus forecast among analysts of $1.64. Revenue for the quarter came in at $2.04 billion, which also topped estimates of $2.01 billion.
Management attributed the strong results to growing sales of its robotic surgery equipment. The company, which makes the minimally invasive da Vinci surgical system, said that the number of medical procedures carried out with its equipment worldwide rose 18% year-over-year in Q3.
Pent-Up Demand for Intuitive Surgical Equipment
In the earnings release, executives at Intuitive Surgical said that they are benefitting from the unwinding of pent-up demand for its surgical equipment coming out of the COVID-19 pandemic, when many non-essential surgical procedures were put on hold.
Sales of the da Vinci surgical system were particularly strong in Asia during Q3, and the company’s advanced da Vinci 5 system recently received regulatory clearance in South Korea for use in several surgical procedures. ISRG stock has gained 40% so far in 2024.
Is ISRG Stock a Buy?
Intuitive Surgical stock has a consensus Strong Buy rating among 20 Wall Street analysts. That rating is based on 15 Buy and five Hold recommendations assigned in the last three months. There are no Sell ratings on the stock. The average ISRG price target of $513.84 implies 8.47% upside from current levels.
