On Jun 21, we issued an updated research report on Sunnyvale based Intuitive Surgical (NASDAQ:ISRG) – manufacturer of the da Vinci surgical system (an advanced robot-assisted surgical system) and related instruments and accessories. The company currently carries a Zacks Rank #4 (Sell).
Over the last 60 days, the Zacks Consensus Estimate for full-year 2016 earnings moved down by 11 cents to $17.56 per share, as most analysts revised their estimates downward.
In the past, the company faced several headwinds including delayed market acceptance of new products (risk of procedure adoption). Other than that, unfavorable currency fluctuation impacted the company’s growth trajectory to a large extent, as the company is expanding its presence in international markets. Increasing regulatory headwinds and low capital investment in hospitals are the other dampeners.
On the positive side, Intuitive Surgical reported impressive first-quarter 2016 results with both earnings and revenues steering past the Zacks Consensus Estimate. Expenses on research and development (R&D) increased significantly in the first quarter, reflecting high spending on advanced imaging, advanced instrumentation and next-generation robotics.
In the long haul, extensive expenditure on product pipeline and expansion in international markets like Europe should drive growth for the company.
Stocks to Consider
Better-ranked stocks in the same space include Cryolife Inc (NYSE:CRY) , IRadimed Corp (NASDAQ:IRMD) and Masimo Corporation (NASDAQ:MASI) . Each of these stocks sports a Zacks Rank #1 (Strong Buy).
INTUITIVE SURG (ISRG): Free Stock Analysis Report
MASIMO CORP (MASI): Free Stock Analysis Report
IRADIMED CORP (IRMD): Free Stock Analysis Report
CRYOLIFE INC (CRY): Free Stock Analysis Report
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