Intuitive Surgical Stock Surges on Q4 Preliminary Revenue Beat

Intuitive Surgical ISRG recently announced encouraging preliminary revenues for fourth-quarter and full-year 2024. The company's shares rose 7.7% on Jan. 15 on the back of robust preliminary results.The company is scheduled to release fourth-quarter results on Jan. 23, 2025.Per the preliminary report, the quarterly worldwide revenues totaled $2.41 billion, suggesting an increase of 25% year over year on a reported basis. The preliminary revenues beat the Zacks Consensus Estimates of $2.21 billion.The company’s instruments and accessories revenues are likely to be approximately $1.41 billion in the fourth quarter, up 23% from the prior-year period’s level. The preliminary da Vinci procedures increased 18% year over year.Procedure volume was driven by growth in U.S. general surgery and cancer procedures in ex-U.S. markets.Preliminary systems revenues for the fourth quarter of 2024 are likely to be approximately $655 million, up 36% year over year. The strong growth was driven by higher da Vinci system average selling prices and a lower mix of leased systems compared to previous periods.Intuitive Surgical, Inc. Price Intuitive Surgical, Inc. price | Intuitive Surgical, Inc. QuoteThe company placed 493 da Vinci Surgical systems in the fourth quarter of 2024, up from 415 systems in the year-ago period. Among the system placements during the fourth quarter, 222 were placed under operating lease and usage-based arrangements. These systems included 174 of ISRG’s latest robotic platform, da Vinci 5.Full-Year Prelim ResultsPer Intuitive Surgical, its full-year worldwide revenues are likely to be $8.35 billion, suggesting an increase of 17% year over year on a reported basis. The Zacks Consensus Estimate of $8.15 million lies below the preliminary figure.Instruments and accessories revenues for the full year are expected to be $5.08 billion, suggesting growth of 19% year over year. Systems revenues improved 17% to $1.97 billion compared to 2023.A Brief Q4 AnalysisIntuitive Surgical’s procedure volumes have increased in the past few quarters and the trend has continued into the fourth quarter. The company’s procedure volumes were primarily driven by general surgery and cancer procedures. ISRG expects worldwide da Vinci procedures to grow approximately 13-16% in 2025, signaling continued confidence in the adoption of robotic-assisted surgical solutions.However, challenges persisted. The company’s shift toward usage-based operating leases, while offering flexibility to customers, may lead to deferred revenue recognition compared to outright sales. While international growth remained strong, economic and healthcare disparities in certain regions could pose challenges for sustained expansion.Price PerformanceShares of the company have risen 22.5% in the past three months compared with the industry’s 0.1% growth and the S&P 500’s 0.9% increase.Image Source: Zacks Investment ResearchZacks Rank & Stocks to ConsiderIntuitive Surgical currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader medical space are Masimo MASI, Accuray ARAY and Abbott Laboratories ABT.Masimo, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 11.8% for 2025. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.MASI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 17.10%. Its shares have risen 14.9% compared with the industry’s 0.2% growth in the past three months.Accuray, carrying a Zacks Rank #2 at present, has an estimated growth rate of 1200% for 2025. Its earnings missed estimates in three of the trailing four quarters and met in one, delivering an average negative surprise of 141.97%.ARAY’s shares have gained 15.8% compared with the industry’s 0.2% growth in the past three months.Abbott, carrying a Zacks Rank of 2 at present, has an estimated earnings growth rate of 10% for 2025. It delivered a trailing four-quarter average earnings surprise of 1.64%.ABT’s shares have lost 4.1% in the past three months compared with the industry’s 3.5% decline.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Abbott Laboratories (ABT): Free Stock Analysis Report Accuray Incorporated (ARAY): Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG): Free Stock Analysis Report Masimo Corporation (MASI): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks