Intuitive Surgical Beats Up on Analysts Yet Again

Intuitive Surgical (Nasdaq: ISRG  ) reported earnings on Jan. 19. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Intuitive Surgical beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly, and earnings per share increased significantly.
Gross margins improved, operating margins grew, net margins shrank.
Revenue details
Intuitive Surgical logged revenue of $497 million. The 13 analysts polled by S&P Capital IQ looked for sales of $484 million. Sales were 28% higher than the prior-year quarter's $389 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $3.75. The 14 earnings estimates compiled by S&P Capital IQ averaged $3.35 per share. GAAP EPS of $3.75 for Q4 were 24% higher than the prior-year quarter's $3.02 per share.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 73.0%, 50 basis points better than the prior-year quarter. Operating margin was 40.2%, 70 basis points better than the prior-year quarter. Net margin was 30.4%, 70 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $461 million. On the bottom line, the average EPS estimate is $3.16.
Next year's average estimate for revenue is $2 billion. The average EPS estimate is ! $14.18.< /p>
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 3,939 members out of 4,144 rating the stock outperform, and 205 members rating it underperform. Among 1,281 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,238 give Intuitive Surgical a green thumbs-up, and 43 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Intuitive Surgical is hold, with an average price target of $433.09.
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