Intuitive Surgical Earnings Imminent

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S&P 500 (NYSE:SPY) component Intuitive Surgical (NASDAQ:ISRG) will unveil its latest earnings on Tuesday, October 16, 2012. Intuitive Surgical designs and manufactures da Vinci Surgical Systems, EndoWrist instruments and other surgical accessories.

Intuitive Surgical Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of $3.48 per share, a rise of 14.1% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $3.61. Between one and three months ago, the average estimate moved down. It has been unchanged at $3.48 during the last month. Analysts are projecting profit to rise by 20.2% versus last year to $14.81.

Past Earnings Performance: Last quarter, the company beat estimates by 22 cents, coming in at profit of $3.75 a share versus the estimate of net income of $3.53 a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the second quarter, profit rose 31.9% to $154.9 million ($3.75 a share) from $117.4 million ($2.91 a share) the year earlier, exceeding analyst expectations. Revenue rose 26% to $536.5 million from $425.7 million.

Wall St. Revenue Expectations: On average, analysts predict $534.9 million in revenue this quarter, a rise of 19.7% from the year-ago quarter. Analysts are forecasting total revenue of $2.16 billion for the year, a rise of 22.7% from last year’s revenue of $1.76 billion.

Stock Price Performance: Between July 17, 2012 and October 10, 2012, the stock price fell $49.48 (-9.1%), from $544.11 to $494.63. It saw one of its worst periods between November 15, 2011 and November 25, 2011 when shares fell for eight straight days, dropping 7.9% (-$35.51) over that span. The stock price saw one of its best stretches over the last year between January 10, 2012 and January 19, 2012, when shares rose for seven straight days, increasing 5.4% (+$24.46) over that span.

Key Stats:

With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 27.7% over the last four quarters.

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 24.8% in the fourth quarter of the last fiscal year and 37.8% in the first quarter before increasing again in the second quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 6.93 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company improved this liquidity measure from 6.88 in the first quarter to the last quarter driven in part by an increase in current assets. Current assets increased 10.2% to $3.07 billion while liabilities rose by 9.4% to $443.7 million.

Analyst Ratings: There are mostly holds on the stock with eight of 13 analysts surveyed giving that rating.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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