Intuitive Surgical, Inc. Slow Earnings Growth Masks Deeper Strength
One look at the bottom line from Intuitive Surgical's (NASDAQ: ISRG) earnings release and you might think that the company had hit a speed bump. With the stock trading at 42 times trailing (non-GAAP) earnings, investors rightfully expect heady growth. But that wasn't the case: earnings jumped just 6%.
But that masks serious strengths at the company. Even as outside forces hold back growth in Asia, the most important metric of all -- procedure growth -- continued to blow by management's estimates.
To put this strength in perspective, let's remember that management had guided for a midpoint of 11% growth in procedures worldwide. Instead, we've seen the first and second quarters clock in with 18% and 16% growth, respectively.
Source: Fool.com
Intuitive Surgical Inc Stock
€406.50
1.110%
The stock is an absolute favorite of our community with 36 Buy predictions and no Sell predictions.
However, we have a potential of -2.58% for Intuitive Surgical Inc as the target price of 396 € is below the current price of 406.5 €.
