Should You Worry About This 1 Number From Intuitive Surgical?

Intuitive Surgical (NASDAQ: ISRG) has been a company investors can count on over time. It's steadily grown revenue and profit -- into the billions of dollars. Intuitive is the leader by far in the global robotic surgery market. And shares have more than doubled over the past five years.

But recent times have been tough for this healthcare star. The coronavirus pandemic has weighed on procedure volumes as hospitals postpone surgeries. The stock has fallen about 40% so far this year. The latest bad news is the company posted a 15% decline in surgical system installs in the second quarter. Should you worry about this number? Let's find out.

Intuitive generates revenue through the placement of surgical systems, the sales of accessories needed for the procedures, and maintenance contracts for the machines. The flagship Da Vinci system is used for various types of minimally invasive surgery from urology to hernia repair. Each system placed isn't just revenue on the spot -- but it's recurring revenue from accessories and services sales. So, a decline in system placements represents a good deal of revenue lost.

Source Fool.com