ISRG - Embedded Expectations Analysis - 2020 06 09
Intuitive Surgical, Inc. (ISRG:USA) currently trades near historical highs relative to UAFRS-based (Uniform) earnings, with a 54.3x Uniform P/E. Even at these levels, the market has bearish expectations for the firm, management may be concerned about robotic-assisted surgery demand, surgery deferrals, and procedure declinesSpecifically, management may lack confidence in their ability to improve EPS, balance shareholder policies with other priorities, and meet accumulating robotic-assisted surgery demand. Furthermore, they may have concerns about continued declines in da Vinci procedures in China, the timeline for surgeons to return to surgery from coronavirus care, and their ability to ensure surgeon comfort while using robotic surgery. Moreover, they may be exaggerating the strength of their delivery capability and inventory position, the sustainability of da Vinci's market positioning, and leasing opportunities in Europe despite the coronavirus impact
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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