Intuitive Surgical, Inc. (ISRG) bolstered its balance sheet, blew away estimates, and investors cant get enough.
Company Description
Intuitive is a surgical robotics company that makes the da Vinci Surgical System. The system allows doctors to perform procedures through small incisions. Doctors use natural hand movements to manipulate small instruments inside the patient allowing surgeons to perform surgeries previously only possible through open surgery.
Sliced Through Estimates
On Jul 22 Intuitive announce second quarter results that included earnings per share of $1.62, 28% higher than the Zacks Consensus Estimate of $1.27. Net income came in at $62.4 million, up from $51.2 million in the same period last year.
Revenues for the quarter were $260.6, up from $219.2 on year ago. The da Vinci system’s 52% growth was a main source of increased sales. Intuitive also bolstered its balance sheet, which now contains $902 million in cash, cash equivalents, and investments, up from just $80 million last quarter.
A Quick Recovery
Since the report 12 of the 13 analysts polled by Zacks have raised full-year estimates for 2009. The year’s consensus is now $5.27, up from $4.65. This represents a 2% year-over-year growth.
The Zacks Consensus Estimate for next year is now $6.45, up from $5.96 in the same time period. If met this would be a 22% earnings growth rate.
Carving Up the Industry
Intuitive is currently the top rated Medical Instruments company on Zacks.com. Not only does the innovative company carry no debt, compared to the industry average of nearly a 2:1 debt-to-equity ratio, but it also trumps its peers in ROE and profit margin.
The company’s net profit margin of 22% is roughly 7 times the industry norm of just 35. The return on equity is currently 17%, more than 4 times the average of 4%.
The Chart
Investors could not get enough of ISRG after the stellar quarterly report. Shares popped and did not look back. Take a look below.
