Wall Street Eyes Intuitive Surgical Q4 Earnings As Stock Hits New Heights

Intuitive Surgical (ISRG) stock has been on a tear, reaching record highs ahead of its fourth-quarter earnings report, scheduled for Thursday, January 23, after market hours. The company's strong performance and growth prospects have investors eagerly awaiting the results, with the stock up 63.75% over the past year and 16.06% year-to-date. As Intuitive Surgical enters earnings season at peak levels, investors will be watching for signs of continued growth and market penetration.



Intuitive Surgical's expansion into new markets, such as southern Europe, and its acquisition of key distribution businesses have strengthened its competitive position and growth prospects. The company's acquisition of the da Vinci and Ion distribution businesses in Italy, Spain, and Portugal has expanded its direct presence and customer reach in these regions. CEO Gary Guthart highlighted the move as key to deepening market understanding and better serving customers. With Intuitive Surgical trading at peak levels, investors will be watching earnings for signs of continued growth and market penetration.



Analysts expect Intuitive Surgical to report EPS of $1.79 and revenue of $2.25 billion for the fourth quarter. The company's strong preliminary Q4 and full-year 2024 results indicate that it is well-positioned to meet or exceed these expectations. Preliminary Q4 revenue of approximately $2.41 billion increased by 25% year-over-year, while full-year 2024 revenue grew 17% to $8.35 billion. The company's expansion into new markets and acquisition of key distribution businesses have driven growth in da Vinci procedures and system placements.



Intuitive Surgical's da Vinci 5 system, launched in 2024, has contributed to the company's growth. In Q4 2024, 174 da Vinci 5 systems were placed, representing 35% of total placements. The new system's features and improvements have likely driven surgeon demand and hospital investments. The company's strong financial performance, with Q4 2024 expenses including a $45 million contribution to the Intuitive Foundation, reflects its commitment to growth and innovation.



Investors should focus on the following key metrics to assess Intuitive Surgical's performance:

1. Revenue Growth: Investors will be looking for continued revenue growth, with a focus on the year-over-year (YoY) change in revenue. In the preliminary Q4 results, Intuitive Surgical reported a 25% increase in revenue compared to the same period last year, indicating strong growth.
2. Procedure Volume: The number of procedures performed using Intuitive Surgical's da Vinci systems is a crucial metric for assessing the company's performance. In Q4 2024, the company reported an 18% increase in da Vinci procedures compared to Q4 2023, demonstrating strong demand for its products.
3. System Placements: The number of da Vinci surgical systems placed in Q4 2024 increased by 19% compared to Q4 2023, with 493 systems placed in total. This metric indicates the growth in the installed base of Intuitive Surgical's systems and the potential for future revenue.
4. Gross Margin: Investors will be interested in the gross margin, which reflects the company's ability to maintain pricing power and control costs. In the preliminary Q4 results, Intuitive Surgical did not provide specific gross margin figures, but investors should look for any trends or changes in this metric compared to previous quarters.
5. Earnings per Share (EPS): EPS is a key metric for assessing the company's profitability. In the preliminary Q4 results, Intuitive Surgical reported EPS of $6.23, up from $5.35 in Q4 2023. Investors should compare this figure to the consensus analyst estimate of $1.79 for Q4 2024.
6. Guidance for 2025: Intuitive Surgical's guidance for 2025 procedure growth of 13-16% suggests continued momentum, though at a slightly moderated pace compared to 2024's 17% growth. Investors should pay close attention to the company's guidance for the coming year to assess its long-term prospects.

In conclusion, Intuitive Surgical's strong growth in da Vinci procedures and system placements, driven by its expansion into new markets and acquisition of key distribution businesses, has positioned the company for continued success. As the company reports its fourth-quarter earnings, investors will be watching for signs of continued growth and market penetration. By focusing on key metrics such as revenue growth, procedure volume, system placements, gross margin, EPS, and guidance for 2025, investors can gain a comprehensive understanding of Intuitive Surgical's performance and make informed decisions about the company's stock.