Revenue Growth - Total revenue for Q4 2024 increased by 25% to $2,413.5 million compared to $1,928.3 million in Q4 2023[2] - Instruments and accessories revenue grew by 23% to $1,411.5 million in Q4 2024 from $1,143.7 million in Q4 2023[2] - Recurring revenue accounted for 80% of total revenue in Q4 2024, slightly down from 82% in Q4 2023[2] System Placements - Da Vinci Surgical System placements in the US increased by 36% to 284 units in Q4 2024 from 209 units in Q4 2023[2] - Da Vinci SP Systems placements surged by 58% to 30 units in Q4 2024 from 19 units in Q4 2023[2] - Ion System placements rose by 57% to 69 units in Q4 2024 from 44 units in Q4 2023[2] - The installed base of Da Vinci Surgical Systems increased by 15% to 9,902 units in 2024 from 8,606 units in 2023[2] - Average selling price of systems increased by 12% to $1.59 million in Q4 2024 from $1.42 million in Q4 2023[2] Procedure Growth - Total worldwide procedures increased by 17% to 2,683 thousand in 2024 from 2,286 thousand in 2023[4] - General Surgery procedures outside the US grew by 35% to 254 thousand in 2024 from 188 thousand in 2023[4]

Intuitive Surgical, Inc. ISRG is announcing its fourth-quarter earnings on Thursday. Wall Street expects $1.79 in EPS and $2.25 billion in revenues as the company reports after market hours.The stock is up 63.75% over the past year, 16.06% YTD. Intuitive Surgical enters earnings season at record highs, with shares recently hitting an all-time high of $615.99. The company's expansion in southern Europe, acquiring da Vinci and Ion distribution businesses, strengthens its direct presence and customer reach. CE ...

Core Viewpoint - Intuitive Surgical, Inc. (ISRG) is expected to report strong fourth-quarter 2024 earnings, with sales projected at $2.41 billion, reflecting a 25% year-over-year increase, and earnings per share estimated at $1.77 [1][5]. Earnings Estimates - The Zacks Consensus Estimate for ISRG's sales and earnings is $2.41 billion and $1.77 per share, respectively [1]. - Earnings per share estimates for 2024 and 2025 have increased to $6.67 and $7.66, respectively, over the past 30 days [1]. Recent Performance - In the last reported quarter, ISRG achieved an earnings surprise of 11.52%, beating estimates in each of the trailing four quarters with an average surprise of 10.96% [3]. Earnings Prediction - The company has an Earnings ESP of 7.29% and a Zacks Rank of 3 (Hold), indicating a favorable outlook for an earnings beat [4]. Sales Growth Factors - Preliminary sales of $2.41 billion for Q4 2024 indicate a 25% year-over-year growth, driven by strong procedure performance and capital placements [5]. - Instruments and accessories revenues are expected to be approximately $1.41 billion, up 23% year over year, with da Vinci procedures increasing by 18% [6]. Market Trends - General surgery procedures in the U.S. and cancer procedures in ex-U.S. markets have contributed to procedure growth [9]. - China's recovery post-COVID and rising adoption in Japan and India are expected to boost sales [10]. System Placements - ISRG placed 174 da Vinci 5 systems in the U.S., reflecting nearly 60% sequential growth [11]. - Strong system placements in the Asia-Pacific region are also anticipated, although placements in China may face challenges [11]. Margin Expectations - Margins are likely to improve due to cost reductions and lower freight rates, despite an expected increase in depreciation expenses [13]. Stock Performance - ISRG shares have appreciated 31.3% over the past six months, outperforming the industry and S&P 500 [14]. - The current forward 12-month P/E ratio is 93.03X, significantly higher than the industry average of 33.14X, indicating a premium valuation [17]. Investment Outlook - Despite high valuation, ISRG is expected to continue strong performance driven by da Vinci procedure volume growth and improved system placements [20]. - The launch of new systems in Europe and the U.S. is expected to drive further growth, although challenges in bariatric procedures and China may offset some gains [21].

Company Overview - Intuitive Surgical is a healthcare company specializing in robotic-assisted surgical devices, particularly the da Vinci surgical systems, which enable minimally invasive and precise procedures [1] - The company's devices are costly, with prices upwards of $2 million, leading many customers to opt for leasing instead of purchasing [2] Financial Performance - Preliminary Q4 2024 results show revenue of $2.4 billion, a 25% increase from the same period last year [3] - Full-year 2024 revenue is expected to reach $8.4 billion, a 17% increase from the $7.1 billion reported in 2023 [3] - The company has shown strong recovery and growth after pandemic-related disruptions [4] Market and Industry Outlook - The surgical robots market is projected to grow at a compounded annual growth rate of 9.5% until 2030, reaching a global market value of $7.4 billion, up from $4.3 billion in the previous year [4] - The market has significant long-term growth potential as healthcare technologies advance [4] Valuation and Investment Considerations - Intuitive Surgical's stock has rallied, increasing by around 60% over the past 12 months [3] - The stock is expensive, with a price-to-earnings multiple of 95 and a price/earnings-growth multiple over 4, indicating a high valuation [5] - The company's market cap exceeds $210 billion, reflecting a rich valuation [6] - Despite the high valuation, the company's long-term growth potential remains strong, driven by the increasing demand for robotic surgical devices [6][7] - Investors should consider a long-term holding period (10-plus years) to realize potential gains, as short-term gains may be limited due to the stock's high price [7]

Core Insights - Intuitive plans to establish a direct presence in Italy, Spain, Portugal, Malta, and San Marino through the acquisition of da Vinci and Ion distribution businesses in these regions [1][2] - The acquisition is subject to regulatory approvals and is expected to close in 2026 [2][3] - The integration of the acquired businesses will enhance Intuitive's understanding of customer needs and improve patient access to minimally invasive care [3][4] Company Strategy - The acquisition aligns with Intuitive's strategy to invest in expanding its footprint in Europe and to deepen customer relationships [3][4] - Intuitive aims to leverage its direct presence to optimize care delivery and support better patient outcomes [6] Business Operations - Upon completion of the deal, the da Vinci and Ion businesses will be wholly owned by Intuitive and integrated into its European commercial and marketing organization [3][4] - The leadership of the acquired companies has played a significant role in establishing robotic technology in Europe, which will be continued post-acquisition [4][5]

Group 1 - Narweena is an asset manager that focuses on identifying market dislocations due to poor understanding of long-term business prospects [1] - The firm aims to achieve excess risk-adjusted returns by targeting businesses with secular growth opportunities in markets with barriers to entry [1] - Narweena's investment strategy emphasizes company and industry fundamentals to uncover unique insights, with a high risk appetite and long-term investment horizon [1] Group 2 - The firm favors smaller cap stocks and markets where competitive advantages are not immediately apparent [1] - Narweena believes that an aging population, low population growth, and stagnating productivity will create new investment opportunities distinct from historical trends [1] - Many industries may experience stagnation or secular decline, which could paradoxically enhance business performance by reducing competition [1] Group 3 - Some businesses may face rising costs and diseconomies of scale, while economies are increasingly dominated by asset-light businesses [1] - The declining need for infrastructure investments is leading to a situation where a large pool of capital is pursuing a limited set of investment opportunities, driving up asset prices and compressing risk premia [1] - Richard Durant, the leader of Narweena, has a strong educational background in engineering and finance, along with an MBA, and has passed the CFA exams [1]

Core Viewpoint - Analysts forecast that Intuitive Surgical, Inc. (ISRG) will report quarterly earnings of $1.76 per share, reflecting a year-over-year increase of 10%, with anticipated revenues of $2.41 billion, showing a 25.2% increase compared to the previous year [1]. Earnings Estimates - The consensus EPS estimate for the quarter has been revised upward by 0.6% over the past 30 days, indicating a collective reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts predict 'Revenue- Product (Instruments and accessories and Systems)' will reach $1.82 billion, indicating a year-over-year change of +12.4% [5]. - 'Revenue- Services' is expected to be $343.90 million, reflecting a +13% change year over year [5]. - 'Revenue- Systems' is projected to be $484.93 million, showing a +1% change from the previous year [5]. - 'Revenue- Instruments and accessories' is estimated at $1.34 billion, suggesting a +17.2% year-over-year change [6]. System Units and Installed Base - Total System Units Placed - Total Company is expected to reach 427, up from 415 in the previous year [6]. - The 'Da Vinci Surgical System Installed Base' is forecasted to be 9,931, compared to 8,606 in the same quarter last year [7]. - Total System Units Placed - Outside of the United States is projected at 207, slightly up from 206 in the previous year [7]. - Total System Units Placed - United States is expected to be 208, down from 209 in the same quarter last year [8]. Profit and Cost Estimates - Estimated 'Gross profit- Service' is $229.90 million, compared to $214.80 million in the same quarter last year [8]. - 'Cost of revenue- Service' is expected to reach $106.97 million, up from $89.60 million in the previous year [9]. Stock Performance - Shares of Intuitive Surgical have returned +11.5% over the past month, contrasting with the Zacks S&P 500 composite's -2.1% change [9].

Core Insights - Intuitive Surgical (ISRG) shares reached a record high following the announcement of preliminary fourth-quarter and full-year revenue exceeding expectations, driven by increased demand for surgical robotics equipment [2][10] Financial Performance - The company placed 493 da Vinci surgical systems in Q4, an increase from 415 in the previous year, with procedures using the equipment growing 17% year-over-year, particularly in cancer operations [3][10] - Intuitive Surgical shares rose 0.7% to close above $584, having surged nearly 8% the previous day, and have increased 60% over the past 12 months, significantly outperforming the S&P 500's 25% return during the same period [4][10] Technical Analysis - The stock has been trading within an extended rising wedge pattern since early February last year, with recent price consolidation near the lower trendline and 50-day moving average before a significant upward movement [5][10] - An upside target of $650 has been projected using the measuring principle, which involves adding $70 to the top trendline of the rising wedge [7][10] - Key support levels to monitor during potential pullbacks include $550 and $520, with the $550 level expected to attract buying interest [8][9][10]

Core Viewpoint - Intuitive Surgical (ISRG) reported strong preliminary revenues for Q4 and full-year 2024, leading to a 7.7% increase in share price on January 15, 2025 [1] Q4 Preliminary Results - Worldwide revenues for Q4 2024 reached approximately $2.41 billion, reflecting a 25% year-over-year increase and surpassing Zacks Consensus Estimates of $2.21 billion [1] - Instruments and accessories revenues are expected to be around $1.41 billion, up 23% from the previous year [2] - Preliminary systems revenues are projected to be about $655 million, marking a 36% year-over-year growth [3] - The company placed 493 da Vinci Surgical systems in Q4 2024, an increase from 415 systems in the same period last year [4] Full-Year Preliminary Results - Full-year worldwide revenues are anticipated to be $8.35 billion, indicating a 17% year-over-year increase, exceeding the Zacks Consensus Estimate of $8.15 billion [5] - Instruments and accessories revenues for the full year are expected to be $5.08 billion, representing a 19% growth year-over-year [5] - Systems revenues improved by 17% to $1.97 billion compared to 2023 [5] Procedure Volume and Future Outlook - Procedure volumes have shown consistent growth, primarily driven by general surgery and cancer procedures, with an expected growth of approximately 13-16% in worldwide da Vinci procedures for 2025 [6] Price Performance - Intuitive Surgical's shares have increased by 22.5% over the past three months, outperforming the industry growth of 0.1% and the S&P 500's increase of 0.9% [8]

Group 1 - Intuitive Surgical reported preliminary Q4 sales of $2.4 billion, reflecting a 25% year-over-year growth, significantly exceeding the consensus estimate of $2.2 billion and 14% growth [1] - The total procedure volume increased by 18% in Q4, driven by the new da Vinci 5 system, with 174 out of 493 systems placed in Q4 being the new model [1] - The company anticipates total procedure volume growth between 13% and 16% in 2025 [1] Group 2 - Intuitive Surgical's stock (ISRG) has risen 72% since the beginning of 2024, outperforming peers and the broader market [2] - Over the last four years, ISRG stock has shown volatility with annual returns of 32% in 2021, -26% in 2022, 27% in 2023, and 55% in 2024 [2] - The Trefis High Quality Portfolio has outperformed the S&P 500 with better returns and less risk compared to ISRG [2] Group 3 - Current ISRG stock trades at $580, with a price-to-sales (P/S) ratio of 25x trailing revenues, higher than its five-year average of 20x [3] - A slight rise in valuation multiple is considered justified due to strong growth in procedure volume and sales [3] - A bullish outlook for Intuitive Surgical projects substantial growth in its share of overall surgical procedures [3]