What's Going On With Robotics Focused Intuitive Surgical Stock Today?

Tuesday, Intuitive Surgical Inc ISRG reported preliminary fourth-quarter revenue of approximately $1.93 billion, up 17% Y/Y, versus the consensus estimates of $1.87 billion. 

The company expects FY23 revenue of approximately $7.12 billion, up 14% Y/Y versus estimates of $7.07 billion.

Q4 da Vinci procedures grew approximately 21% Y/Y, while full-year procedures jumped about 22%. 

Intuitive Surgical placed 415 da Vinci surgical systems in the fourth quarter, up 12% Y/Y, and 1,370 da Vinci surgical systems in 2023, an increase of 8% Y/Y.

The company's overall procedure volume growth in 2023 was largely attributable to 25% growth in U.S. general surgery procedures and 27% growth outside of the U.S. total procedures, primarily driven by cancer procedures. 

William Blair anticipates that Intuitive is poised for a robust start in 2024, backed by strong momentum. The company is expected to sustain high-teens to 20%-plus growth in Instrument and Accessory (I&A) sales, along with better-than-anticipated placements of its surgical systems. 

Looking ahead, Intuitive is likely to maintain this momentum in 2024 because more than 60% of procedures suitable for da Vinci robotic systems are still conducted manually, offering considerable potential for growth as healthcare facilities seek to maximize returns on their robotic investments by shifting more cases to the da Vinci platform.

The company expects worldwide da Vinci procedures to increase approximately 13%-16% in 2024.

The William Blair analyst suggests that the company's guidance implies a utilization growth rate below its historical levels, a conservative estimate given the current high utilization rates. 

The cautious approach could potentially lead to the company surpassing its projected performance until 2024, especially if it introduces an advanced multiport system. 

Despite shares trading at 53 times their estimated earnings per share for 2024 in after-hours trading, the analysts anticipate this scenario to propel share momentum, supporting its Outperform rating.

Price Action: ISRG shares are up 6.55% at $352.22 on the last check Wednesday.