Core Insights - Intuitive Surgical's (ISRG) stock price reached $616 on January 23 but has since fallen below $600, closing at $595.55 on February 17, indicating volatility despite a strong uptrend since November 2023 [1][26] - The company's shares have increased by 22.7% over the past six months, outperforming the Zacks Medical - Instruments industry, which declined by 0.8%, and the broader Zacks Medical sector, which fell by 10.8% [2] Financial Performance and Revenue Growth - ISRG reported fourth-quarter 2024 revenues of $2.41 billion, a 25.2% year-over-year increase, with full-year revenues of $8.4 billion reflecting a 17% year-over-year growth [6] - The company has achieved consistent recurring revenues, now accounting for 84% of total earnings, and reported earnings per share (EPS) growth of 2% to $2.21 [6] - A decline in operating margin is anticipated in 2025 due to increased depreciation expenses and a higher mix of lower-margin products [6][24] Rising Procedure Volume and Market Expansion - The volume of Da Vinci procedures increased by 17% in 2024, with expectations for continued growth in 2025, particularly in the U.S. market for general surgery procedures [8] - International markets, including India, the UK, Italy, and Japan, experienced robust growth of 25% year-over-year, supported by recent investments and approvals [9] - The Da Vinci SP and Ion platforms saw growth rates of 12% and 13%, respectively, indicating strong demand and adoption [11] Strategic Investments and Market Penetration - ISRG plans to invest EUR 290 million to directly market its da Vinci products in Italy, Spain, and Portugal, enhancing customer relationships [15] - Manufacturing expansion is underway with new facilities in California, Germany, and Bulgaria to support scalable production for Da Vinci 5 and Ion systems [15] - Digital tools like the My Intuitive app and VR simulators are being developed to improve surgeon training and procedural outcomes [15] Competitive Challenges and Market Headwinds - ISRG faces increasing competition from companies like Johnson & Johnson and Medtronic, as well as local manufacturers in China, which are intensifying pricing pressures [18] - Capital constraints in Europe and delays in Japan may slow hospital adoption of ISRG's robotic platforms [18] - Geopolitical risks, including tensions in China and the ongoing Russia-Ukraine conflict, could impact global expansion efforts [20] Future Outlook - ISRG projects procedural growth of 13-16% in 2025, balancing expansion opportunities with market challenges [23] - Gross profit margins are expected to moderate to 67-68% in 2025 due to increased depreciation expenses and a shift toward lower-margin products [24] - The company currently holds a Zacks Rank 3 (Hold), with a significant premium in stock valuation compared to the industry [25]

Robotics is something that is transforming many industries -- and one of the biggest winners is the area of healthcare. Using robots in minimally invasive surgeries has been shown to decrease chances of complications, shorten hospital stays, and lower mortality rates. And one player in particular dominates this market, growing its system installation base, procedure volume, and revenue in the double digits in the most recent quarter.I'm talking about Intuitive Surgical (ISRG 0.70%), a company that sells the ...

Company Performance - Intuitive Surgical has shown impressive trailing average annual returns over various periods, including 53.78% over the past year and 26.58% over the past 10 years [2] - A hypothetical $10,000 investment in Intuitive Surgical a decade ago would be worth approximately $105,634 today, indicating a more than tenfold increase in value [2] Market Comparison - In comparison, the S&P 500 index averaged annual gains of 12.71% over the same decade, with a $10,000 investment growing to about $36,480 [3] Current Investment Consideration - Despite the strong performance, shares of Intuitive Surgical are considered not cheap at recent levels, suggesting a potential wait for a pullback or an incremental investment strategy [4] - The company is experiencing solid growth, with a 25% year-over-year increase in revenue and a 38% rise in adjusted earnings per share reported in the fourth quarter [5] - Intuitive Surgical installed 493 da Vinci surgical systems during the quarter, increasing its global installed base by 15% to nearly 10,000 machines [5]

Core Viewpoint - Intuitive Surgical is experiencing solid growth and has significant long-term potential, but its stock has been declining due to concerns over potential tariffs impacting its business [1][2]. Financial Performance - In the fourth quarter of 2024, Intuitive Surgical reported sales of $2.4 billion, representing a 25% year-over-year increase [3]. - The number of da Vinci procedures increased by 18%, and the total number of da Vinci surgical systems installed rose by 15%, reaching 9,902 systems by year-end [3]. Tariff Impact - Management indicated that the threat of tariffs could have a "material impact" on the company's financials, particularly affecting margins and overall profitability [4]. - A significant portion of Intuitive's instruments is manufactured in Mexico, raising concerns about the proposed 25% tariffs by the U.S. government [4][5]. - The potential for retaliatory tariffs could also negatively affect demand for Intuitive's systems in international markets [5]. Market Sentiment - Investors are bracing for volatility due to the potential increase in costs from tariffs, which may be passed on to consumers already facing high inflation [6]. - The overall economic conditions and the negative effect on margins contribute to a cautious outlook for the healthcare company in the near term [7]. Long-term Investment Perspective - Despite the tariff threats, Intuitive Surgical is considered a good long-term investment opportunity, as policies can change with different administrations [9]. - The company has promising growth potential, but its current price-to-earnings multiple of around 90 suggests that future growth is already factored into its valuation, making it susceptible to further declines in the short term [10].

It's hard to predict which way the market, or any specific company, will move in a short period, like a single year. But the longer we expand our horizon, the more likely it is that excellent companies, and equities in general, will deliver solid returns. That's one of the reasons (along with tax advantages) that long-term investing is a great strategy.However, this all hinges on which stocks you choose to buy -- putting your hard-earned money into subpar companies won't result in attractive long-term retur ...

Investors had a volatile end to January as they weighed the Federal Reserve's pause on rate cuts, a busy earnings season and the prospect of new tariffs.Given these dynamics and the volatility in the stock market, it could be difficult for investors to pick the right stocks for their portfolios. Tracking the recommendations of top analysts could be helpful in this regard, as they look beyond short-term noise and focus on companies' long-term growth potential.With that in mind, here are three stocks favored ...

Surgical Systems and Technology - Intuitive launched its first da Vinci surgical system in 1999, receiving FDA clearance for general laparoscopic surgery in 2000[25]. - The da Vinci surgical systems include multiple models, such as the fifth-generation da Vinci 5 and fourth-generation da Vinci X, Xi, and SP systems[26]. - The da Vinci systems provide surgeons with 3D high-definition vision, robotic assistance, and specialized instrumentation for precise surgical procedures[27]. - The Ion endoluminal system, cleared by the FDA in 2019, is designed for minimally invasive lung biopsies, extending the company's offerings into diagnostic procedures[33]. - The da Vinci surgical systems feature advanced capabilities like motion scaling, which translates larger hand movements into smaller instrument movements for precision[35]. - The SureForm staplers, used in various surgical procedures, are available in lengths of 30, 45, and 60 mm, indicating the length of the staple line[37]. - The E-200 generator, introduced recently, provides high-frequency energy for cutting, coagulation, and vessel sealing, enhancing surgical efficiency[38]. - The installed base of da Vinci surgical systems reached 9,902 units as of December 31, 2024, with 5,807 in the U.S., 1,867 in Europe, 1,745 in Asia, and 483 in the rest of the world[79]. - Approximately 2,683,000 surgical procedures were completed using da Vinci technology globally during the year ended December 31, 2024[79]. - The company focuses on five surgical specialties, including general, urologic, gynecologic, cardiothoracic, and head and neck surgery, with specific key procedures identified[66]. Training and Support - Intuitive offers a comprehensive suite of training pathways and learning technologies to support surgeons and healthcare teams in using their systems effectively[44]. - The company maintains a network of field service engineers for installation, repair, and 24/7 technical support, ensuring optimal system performance[50]. - Readiness support includes operational assistance for onboarding new systems, while maintenance support maximizes efficiency and reduces downtime[52]. Financial Performance and Market Dynamics - Domestic revenue accounted for 67% of total revenue in 2024, while revenue from OUS markets accounted for 33%[81]. - The company experienced seasonal fluctuations, with higher procedure volumes in the fourth quarter and lower volumes in the first quarter[85]. - The da Vinci procedure business is divided into cancer procedures and benign conditions, with cancer procedures generally reimbursed at higher rates[77]. - The company aims to provide hospitals with clinical and economical solutions across the spectrum of procedure complexity, targeting both complex and price-sensitive markets[78]. - The company generates service revenue through comprehensive service contracts and time and material programs, providing installation, repair, and maintenance services[87]. Regulatory and Compliance - The company’s products are classified as Class II medical devices, requiring premarket notification under Section 510(k) of the FFDCA for commercial distribution[100]. - The FDA imposes significant limitations on the intended use of products as a condition for marketing authorization, with ongoing compliance requirements post-market[108]. - Compliance with the Quality System Regulation (QSR) is essential for maintaining the ability to market cleared or approved products in the U.S., with potential sanctions for non-compliance[109]. - Regulatory approvals and compliance with safety and quality regulations are required for marketing products in foreign countries, with varying processes and timelines[117]. - The EU Medical Devices Regulation (MDR) became effective on May 26, 2021, establishing a uniform regulatory framework for medical devices across the EU[126]. - Manufacturers must register with the European database on medical devices (EUDAMED) and assign unique identifiers to devices before market placement[127]. - Non-compliance with healthcare laws may result in significant penalties, including fines and operational restrictions[116]. Competition and Market Challenges - The company faces competition from established firms like Johnson & Johnson and Medtronic plc, as well as emerging companies in the robotic-assisted surgery market[92]. - The company anticipates increased competition in China for robotic-assisted surgical systems, which may affect its competitive position[182]. - Increased competition in the robotic-assisted surgical system industry in China has led to fewer systems being placed than anticipated in 2024[189]. - The U.S. government plans to impose a 25% tariff on imports from Mexico, which could significantly increase costs for products manufactured there[193]. Workforce and Diversity - As of December 31, 2024, the company had approximately 15,638 full-time employees, with a turnover rate of approximately 8.9%[158]. - In 2024, the company conducted a full pay equity audit, revealing that women earn 99.5% of what men earn, and employees of color earn 100.0% of what white employees earn[168]. - The company achieved a 92% employee engagement score in 2024, indicating strong employee commitment to its mission[173]. - The company has a diverse Board composition, with 42% of its members being women and 42% identifying as individuals from underrepresented communities[163]. - The company emphasizes inclusion and diversity, aiming to create an environment where every individual can belong and flourish[161]. - The company has a four-part strategy for its inclusion and diversity efforts, focusing on creating an inclusive experience, building a diverse workforce, enhancing fairness in people practices, and strengthening industry engagement[161]. Research and Development - As of December 31, 2024, the company owned more than 5,300 patents granted and in force, with over 2,400 patents pending worldwide[97]. - The company collaborates with other firms for research and development, such as the Integrated Table Motion product developed with Hillrom[88]. - Significant investments in research and development are critical for future success, but may not yield immediate financial returns or meet expectations[206]. Cybersecurity and Data Privacy - Cybersecurity threats pose risks to the company's information technology systems, potentially leading to operational disruptions and financial losses[223]. - Various controls and systems have been implemented to secure information technology systems, including encryption and authentication technologies[224]. - There is a risk of unauthorized access due to potential security breaches, employee error, and third-party fraud attempts[224]. - Increased cybersecurity risks are noted due to reliance on internet technology and remote work arrangements[224]. - The occurrence of security breaches may disrupt business operations and divert management attention[224]. - Unauthorized access could lead to risks such as data loss, patient safety issues, and potential product recalls[224]. - The company acknowledges the challenges in investigating or remediating vulnerabilities due to advanced attack techniques[224]. - The use of AI technologies raises concerns about accidental disclosure of confidential information[224]. Supply Chain and Economic Factors - The company relies on sole- and single-sourced suppliers for critical components, which poses risks of supply disruptions and increased costs due to inflationary pressures[203]. - Current supply chain constraints include difficulties in obtaining engineered raw materials, leading to elevated material prices and potential failure to meet product demand[204]. - Macroeconomic conditions, including inflation and elevated interest rates, could negatively impact demand for products and overall financial performance[215]. - Hospitals and distributors may reduce spending on capital equipment due to financial pressures, impacting the company's revenue[220].

Over the past decade, Intuitive Surgical (ISRG -0.39%) has proven to be a long-term winner in the healthcare sector. The stock is up more than 950% in that time frame, and more than 60% over the past year.The maker of the da Vinci robotic-assisted surgery reported soaring revenue among its fourth-quarter results. Let's examine those recent results, along with the launch of Intuitive's newest da Vinci system, to help see whether the stock's momentum can continue.Revenue surgesThe fourth quarter continued the ...

During the fourth quarter, Intuitive Surgical (ISRG) placed 493 systems, up 19% from 415 in the year-ago period. Total system placements were record-high in the past year.  This includes 284 systems placed in the United States (up 75 systems year over year) and 209 systems outside the country (up slightly from 206 a year ago).Product-wise, placements comprised 174 of the latest da Vinci 5 systems, 69 Ion systems (57% Y/Y growth) and 30 SP systems (94% Y/Y growth). These figures demonstrate robust year-over- ...

POLAND - 2024/11/19: In this photo illustration, the Intuitive Surgical company logo is seen ... [+] displayed on a smartphone screen. (Photo Illustration by Piotr Swat/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesIntuitive Surgical (NASDAQ: ISRG) recently reported its Q4 results, with revenues and earnings exceeding the street estimates. The company reported revenue of $2.4 billion and adjusted earnings of $2.21 per share, compared to the consensus estimates of $2.2 bill ...