Intuitive Surgical Set for Earnings: EPS Up 7.87% Expected

Intuitive Surgical, Inc. anticipates a strong earnings report with an EPS of $1.92, a 7.87% increase. Analysts expect a 16.81% rise in revenue to $2.35 billion. Investors should watch these developments closely.

Date: 30-05-2025

AI Rating: 7

Earnings Per Share (EPS)
Intuitive Surgical, Inc. is expected to report an EPS of $1.92, reflecting a 7.87% increase year-over-year. This positive trajectory in earnings is a strong indicator of the company’s profitability and operational efficiency.

Revenue Growth
The anticipated revenue of $2.35 billion represents a 16.81% growth year-over-year. Such revenue growth not only demonstrates increasing demand for Intuitive Surgical’s products and services but also significantly boosts investor confidence in their operational strength.

Consensus Estimates
For the annual period, the company is projected to achieve earnings of $7.84 per share, a rise of 6.81%, alongside a revenue forecast of $9.65 billion, indicating a 15.56% increase. These trends align with positive expectations from analysts, which generally could elevate stock performance in the near term.

Analyst Revisions
It is noted that analyst revisions have seen a slight decrease of 0.38% in the EPS estimate. Although this adjustment is not favorable, it reflects a minor change and may not significantly impact investor sentiment if overall revenue growth remains robust.

Valuation Metrics
Intuitive Surgical is trading at a Forward P/E ratio of 70.45, significantly above the industry average of 26.28, suggesting that the stock may be overvalued. The high PEG ratio of 4.3 compared to the industry’s average of 2.32 further indicates that investors are paying more for growth potential.

Zacks Rank
Currently rated as a Zacks Rank #3 (Hold), this indicates a neutral stance on the stock, suggesting a balanced outlook without explicit buy or sell recommendations. The mixed sentiment from analysts might deter some investors but shows an opportunity for others looking for stability amidst upcoming earnings.

In conclusion, while Intuitive Surgical displays promising earnings and revenue growth, its high valuation metrics paired with a Zacks Rank of Hold suggest that investors should approach with caution. The forthcoming earnings report will be crucial in shaping investor perceptions and stock performance.

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