On Wednesday, Oppenheimer reaffirmed a Perform rating on Intuitive Surgical shares (NASDAQ:ISRG), a company currently valued at $207.11 billion. The firm's analysts adjusted their financial forecasts following Intuitive Surgical's preliminary fourth-quarter 2024 revenue announcement, which surpassed both Oppenheimer's and the consensus estimates. The company reported revenues of $2.41 billion, which is higher than Oppenheimer's projection of $2.24 billion and the consensus forecast of $2.20 billion, maintaining its impressive 14.83% year-over-year revenue growth trend.
The growth in procedures for the quarter was approximately 18% year-over-year, slightly above the consensus estimate of 16.9%. The full-year 2024 saw a significant contribution from a 19% increase in U.S. general surgery procedures and a 23% growth in procedures outside the United States. Total (EPA:TTEF) system installations saw a year-over-year increase of 19%, reaching 493 units. Of these, the da Vinci (EPA:SGEF) 5 (dV5) systems accounted for 35% of new installations, translating to 174 units. According to InvestingPro, the company maintains a strong gross profit margin of 67% and excellent liquidity with a current ratio of 4.3.
Looking ahead, Intuitive Surgical anticipates procedure growth for fiscal year 2025 to be between 13% and 16%, which is slightly below the consensus estimate of 17%. While trading near its 52-week high, InvestingPro analysis indicates the stock appears overvalued despite its "GREAT" financial health score. Oppenheimer's analysts have made adjustments to their fiscal year 2024 and 2025 estimates based on the fourth-quarter pre-release and the company's guidance for 2025. Additionally, they have introduced their estimates for fiscal year 2026.
Intuitive Surgical is expected to provide further details regarding the procedure outlook by geography and potential changes in competitive dynamics when the company reports its complete fourth-quarter 2024 results on Thursday, January 23, 2025.
For investors seeking deeper insights, InvestingPro offers a comprehensive research report with detailed analysis of ISRG's valuation metrics and growth prospects. Investors and analysts alike will be watching closely for these details to better understand the company's performance and future prospects.
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