Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Intuitive Surgical Answers Short-Term Doubts About Procedure Volume

Surgical robot company Intuitive Surgical (NASDAQ:ISRG) has a habit of answering its skeptics. While investors fretted last quarter over slowing procedure growth, the company rebounded well this time and delivered a solid quarter almost across the board. Intuitive Surgical has never been a cheap stock, and today's valuation still assumes an aggressive adoption curve, but momentum seems to be back in this name.

Strong Results Almost Down The Line

Intuitive Surgical needed a strong quarter to rally the troops, and management delivered. Revenue rose 23% this quarter, as system revenue increased 18%, instrument revenue grew 29%, and service revenue rose 20%.

Profitability and margins were not perfect, but were still quite strong on balance. Gross margin declined about...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details