Can ISRG sustain its earnings growth momentum into 2025?

Intuitive Surgical (ISRG) appears poised to sustain its earnings growth momentum into 2025, based on several key indicators:

1. **Financial Performance Metrics**: ISRG's recent financials show a net income of $688 million and a total revenue of $2.41 billion for the most recent quarter ending on December 31, 2024. The company's diluted EPS was $1.88, which represents a 11.24% year-over-year growth. This robust financial performance demonstrates the company's ability to generate earnings and suggests a strong business foundation.

|code|Ticker|Name|Date|Total Revenue|Net Income|Diluted EPS|market_code|
|---|---|---|---|---|---|---|---|
|ISRG|ISRG.O|Intuitive Surgical|2024 Q1|1.8906E9|5.474E8|1.51|185|
|ISRG|ISRG.O|Intuitive Surgical|2024 Q2|2.0099E9|5.315E8|1.46|185|
|ISRG|ISRG.O|Intuitive Surgical|2024 Q3|2.0381E9|5.706E8|1.56|185|
|ISRG|ISRG.O|Intuitive Surgical|2024 Q4|2.4135E9|6.88E8|1.88|185|

|code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code|
|---|---|---|---|---|---|---|---|
|ISRG|ISRG.O|Intuitive Surgical|2024 Q1|51.71840354767184|11.460912628227804|51|185|
|ISRG|ISRG.O|Intuitive Surgical|2024 Q2|24.76525821596244|14.465516259468078|23.728813559322038|185|
|ISRG|ISRG.O|Intuitive Surgical|2024 Q3|35.921867555979034|16.883638240523023|34.482758620689665|185|
|ISRG|ISRG.O|Intuitive Surgical|2024 Q4|12.657606025871951|25.162059845459734|11.242603550295856|185|

2. **Analyst Expectations**: Analysts have a positive outlook on ISRG, with a consensus rating of "Buy" and an average current price target of $662.75, indicating potential for further price appreciation. Additionally, the Zacks Consensus Estimate for the upcoming quarter projects earnings of $1.71 per share, marking a 14% year-over-year growth. This suggests that analysts expect the company to continue its earnings growth trajectory.
3. **Market Position and Growth Prospects**: ISRG's leadership in robotic-assisted minimally invasive surgery and its substantial market capitalization of $192 billion underscore its strong market position. The company's earnings growth has outpaced expectations, as evidenced by recent operating margin beats and earnings per share growth. This track record, coupled with positive analyst revisions and a Zacks Rank of #3 (Hold), indicates confidence in the company's future performance.
4. **Earnings Guidance and Historical Performance**: ISRG has announced unaudited preliminary earnings guidance for the fourth quarter and year ended 2024, with revenue expected to be approximately $2.41 billion, an increase of 25% compared to the same period in the previous year. This guidance, along with the company's historical performance, supports the notion that ISRG can sustain its earnings growth momentum.

In conclusion, considering ISRG's strong financial performance, positive analyst expectations, robust market position, and earnings guidance, the company is likely to sustain its earnings growth momentum into 2025. Investors should continue to monitor the company's performance and any changes in market conditions that could impact its growth trajectory.