Intuitive Surgical Hits Record High Ahead of Earnings Report

SUNNYVALE, Calif. — Intuitive Surgical, a leader in robotic-assisted minimally invasive surgery, is set to report its fourth-quarter earnings after the market closes Thursday. The company’s stock reached a record high of $614.72 per share on Wednesday, signaling strong investor confidence ahead of the announcement.

Analysts expect Intuitive Surgical to report earnings of $1.77 per share on $2.21 billion in revenue. The unofficial “Whisper number,” representing the Street’s optimistic view, predicts earnings of $2.02 per share. The company has consistently grown its earnings, from $3.03 per share in 2017 to $5.71 in 2023, with projections of $6.91 in 2024 and $7.93 in 2025.

Intuitive Surgical’s price-to-earnings (P/E) ratio of 90 is significantly higher than the S&P 500’s average, reflecting its premium valuation. The company’s flagship product, the da Vinci Surgical System, has revolutionized minimally invasive surgery, while its Ion endoluminal system extends its reach into diagnostic procedures.

Technically, the stock is trading above all its key moving averages, a bullish indicator. However, the stock is considered overbought in the short term, making it vulnerable to a pullback if earnings disappoint. Conversely, a strong earnings report could drive the stock even higher.

Intuitive Surgical, founded in 1995 and headquartered in Sunnyvale, California, has built a robust infrastructure of service and support, including installation, repair, and 24/7 technical support. The company also collaborates with FluoGuide A/S on head and neck cancer treatments.

As earnings season unfolds, market reactions to Intuitive Surgical’s report will be closely watched. Investors are advised to monitor the stock’s performance and manage risks carefully.