Tag Archives: ISRG

Enough On Da Vinci: What About Growth? [Seeking Alpha]

Intuitive Surgical, Inc. (ISRG) designs, manufactures and markets da Vinci Surgical systems and related instruments and accessories, allowing a surgeon to control up to three endoscopic instruments from a remote console while a dual camera provides a 3-D view of the operation. Despite the positive Q1, 2013 earnings, ISRG continues to face turbulence in the short term as the debate for da Vinci Surgical systems continues on, as reported by CNBC and Bloomberg.

Growth Story Continues

For Q1, 2013, ISRG reported net income of $188.9M ($4.56 a share) compared with $143.5M ($3.50 a share) for the same period a year ago. Sales had increased to $611.4M from the year ago result of $495.2M. Both earnings and income were higher than the analysts’ expectation of $3.98 a share and sales of $582.6M.

Managements View on da Vinci System

With over 1 million patients who had surgery that used a da Vinci system, the management is confident that those who invest their time in a serious review of the clinical literature on da Vinci will find ample evidence and the benefit it provides to the medical community.

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MAKO Is For Growth: Seek Income And Stability Elsewhere [Seeking Alpha]

MAKO Surgical Corp. (MAKO) is a medical device company that markets its advanced robotic arm solution, joint specific applications for the knee and hip, and orthopedic implants for orthopedic procedures called MAKOplasty. MAKOplasty is a surgical solution, enabling orthopedic surgeons to treat patient specific, osteoarthritic disease.

Positive Trial Result for Robotic Arm System

MAKO announced the first results from a ten-year, prospective, randomized controlled trial evaluating the accuracy of unicompartmental knee arthroplasty [UKA] implant positioning, with and without robotic arm surgical assistance. Early results are compelling, as they showed that robotic arm-assisted UKA enhanced the accuracy of implant placement and decreased the levels of pain. Dr. Mark Blyth said:

The early results suggest that robotic arm assisted UKA with the RIO system greatly enhances the accuracy of implant placement, which can be achieved with only minimal deviation from the pre-operative plan.

Management is encouraged as the result demonstrates the effectiveness of MAKO’s RIO system and MAKOplasty Partial Knee Resurfacing as a minimally invasive surgical option for patients with early to mid-stage osteoarthritis. The results also underscore the importance of accuracy and precision in UKA surgeries.

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Intuitive Surgical: Short-Term Turbulence, Long-Term Growth [Seeking Alpha]

Intuitive Surgical, Inc. (ISRG) was up 0.53% and closed at $489.39 on March 22, 2013. ISRG had been trading in the range of $455.18-$594.89 in the past 52 weeks. ISRG has a market cap of $19.64B with a beta of 1.58. A lot has happened since mid-February for ISRG, including questioning of robotics surgery, notice of FDA investigation, and questioning of da Vinci’s effectiveness by professionals, resulting in a 14.75% decline for ISRG after my last article on ISRG, dated February 23, 2013. With the new share repurchase plan, we will take a look at ISRG after all the turbulence in the past month.

Defending Side

On March 21, 2013, as reported, ISRG is fighting back after getting slammed by short sellers, trade groups and government agencies about the risk/reward of its robotic surgical devices over the past month. ISRG’s board of directors had authorized the company to repurchase an additional $1B of the company’s outstanding common stock, which will be available after the company’s internal trading window opens on April 23, 2013. With this authorization, the total amount available for share repurchases by the Company is approximately $1.21B, which includes approximately $208M remaining from previous authorizations. $1.21B represents 6.16% of ISRG’s current market cap of $19.64B.

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2 Recently Upgraded Stocks With Solid Fundamentals: Intuitive Surgical And Nike [Seeking Alpha]

Intuitive Surgical, Inc. and Nike, Inc. received positive upgrades from analysts recently. In this article, both companies will be analyzed fundamentally and technically. Options strategies will also be reviewed.

Intuitive Surgical, Inc.

Intuitive Surgical, Inc. (ISRG) designs, manufactures and markets da Vinci Surgical systems and related instruments and accessories. The da Vinci system allows a surgeon to control up to three endoscopic instruments from a remote console while a dual camera provides a 3-D view of the operation. ISRG was up 2.28% and closed at $574.05 on February 22, 2013. ISRG had been trading in the range of $467.26-$594.89 in the past 52 weeks. ISRG has a beta of 1.56.

On February 22, 2013, Goldman Sachs upgraded ISRG from Neutral to Buy with a price target of $715.00 (from $591.00), suggesting 28% upside. Goldman Sachs commented,

“Recent results as well as our own due diligence confirm that surgical robotics is evolving into a platform technology with several new procedure categories gaining traction. As the company sees increased uptake in these procedures, we see the revenue trajectory as sustainable in the +18%-20% range annually whereas consensus estimates call for a slowing in outer years.” The firm also said that the combination of solid revenue growth and the potential for the company to more aggressively deploy capital should share price outperformance.

Analysts have an overall Buy rating with an average price target of $609.14 (6.1% upside potential) for ISRG.

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Intuitive Surgical Is Surging With Fundamental Supports

Intuitive Surgical, Inc. (ISRG) designs, manufactures and markets da Vinci Surgical systems and related instruments and accessories. The da Vinci system allows a surgeon to control up to three endoscopic instruments from a remote console while a dual camera provides a 3-D view of the operation. The Company has placed more than 2,000 da Vinci systems in hospitals internationally. Through its wide installed base and first-mover advantages, ISRG has developed a wide economic moat in the niche of robotics-assisted minimally invasive surgery market.

The da Vinci system offers patients truly significant benefits like quicker recovery times and fewer complications. The switching cost of adopting a new platform is high, giving ISRG a sticky customer base and a strong competitive edge. ISRG is able to earn continuous, recurring revenue by servicing machines and selling surgical instruments. ISRG is a growth stock, and its revenue had increased from 72 million in 2002 to 2,066 million, ttm. The operating margin had been increasing continuously since 2006, from 28.8%, to 39.5% in 2011. ISRG continued to generate increasing free cash flow from 30 million in 2004 to 678 million in 2011. Despite the slowing revenue growth, the company is still achieving 20% plus annual revenue growth with its $2B plus revenue.

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