Intuitive Surgical, Inc. (NASDAQ: ISRG)
Intuitive Surgical is having an incredible day in the market today, and for good reason. Early this morning, the company reported its earnings for the first quarter of 2016, blowing away expectations and exciting investors. Today, we’ll talk about what we saw from earnings, how the market reacted to the news, and what we can expect to see from ISRG moving forward. So, let’s get right to it…
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ISRG Reports Strong Earnings
As mentioned above, Intuitive Surgical is having a very strong day in the market today after announcing its results from the first quarter of 2016. The results were incredibly positive. Here’s what we saw:
- Earnings Per Share – In terms of earnings per share, ISRG definitely made its investors happy. In the quarter, the company reported earnings per share in the amount of $4.42. This represents year-over-year growth of 23.8% and comes in well ahead of analyst expectations. In fact, the Zacks Consensus Estimate for the quarter came in at $3.46 per share including stock-based compensation. In these terms, earnings came in at $3.67 per share (including stock based compensation). All in all, earnings were overwhelmingly positive.
- Revenue – In terms of revenue, ISRG did not disappoint. During the first quarter, analysts expected that the company would report revenue in the amount of $586 million. However, the company actually produced revenue in the amount of $584.5 million. This represents year-over-year growth in the amount of 11.7%.
How The Market Reacted To The News
As investors, we know that the news moves the market. Any time there is positive news released with regard to a publicly-traded company, we can expect to see gains in the value of the stock associated with that company. Adversely, when negative news is released, declines tend to follow. In this case, Intuitive Surgical released overwhelmingly positive news. After all, what investor doesn’t like to see positive earnings? As a result, we’re seeing strong gains in the value of the stock today. Currently (10:13), ISRG is trading at $648.11 per share after a gain of $24.40 per share or 3.91% thus far today.
What We Can Expect To See Moving Forward
Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from ISRG both in the short and the long term. In the short term, the strong earnings highlight the company’s strength. This will likely cause a continuation in investor excitement, leading to further short-run gains. In the long run, I’m expecting to see more of the same. At the moment, sales of the systems provided by Intuitive Surgical are up, and perhaps more importantly, the company is able to demand higher prices for its products. At this point, ISRG has an incredible plan for growth. This, in combination with strong management, great products, and an overwhelmingly high demand from the medical community, will likely help to continue pushing Intuitive Surgical upward. All in all, all signs seem to be pointing toward growth from ISRG.
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What Do You Think?
Where do you think ISRG is headed moving forward and why? Let us know your opinion in the comments below!
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