ISRG - Embedded Expectations Analysis - 2020 02 19
ï€ Intuitive Surgical, Inc. (ISRG:USA) currently trades near historical highs relative to UAFRS-based (Uniform) Earnings, with a 41.0x Uniform P/E, implying bullish expectations for the firm. However, management may be concerned about the adoption of their offerings, declines in growth rates, and their Schölly acquisitionï€ Specifically, management may lack confidence in their ability to accelerate the adoption of their offerings and reduce product costs, and they appear concerned about the sustainability of OUS procedure volume growth and greater productivity per installed system. In addition, they may be concerned about the launch of da Vinci SP and the impact of their lease financing alternatives. Furthermore, they appear concerned about potential declines in I&A revenue per procedure and advanced instrument growth rates. Moreover, management may be exaggerating their opportunities in Korea, the potential of their Schölly acquisition, and their ability to sustain innovation and R&D investments. Finally, they may be concerned about their ability to leverage big data and the demand for IRIS
Intuitive Surgical develops, manufactures, and markets the da Vinci? Surgical System and the Ion? endoluminal system. The systems consist of a surgeon console or consoles, a patient-side cart, a vision system, and proprietary instruments and accessories. The company's technology is designed to provide surgeons with a range of motion analogous to the motions of a human wrist, while filtering out the tremors inherent in a surgeon's hands. The company's primary platform for robotic-assisted surgery is its family of da Vinci Surgical Systems. The da Vinci Surgical System allows surgeons to operate while seated at an ergonomic console viewing a three-dimensional image of the surgical field.
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