ISRG - Embedded Expectations Analysis - 2021 05 25
Intuitive Surgical, Inc. (ISRG:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 57.2x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may have concerns about ION system placements growth, thoracic surgery opportunities, and procedure backlogsSpecifically, management may lack confidence in their ability to sustain increases in net income and ION system placements growth. Moreover, management may have concerns about the pace of extended use instrument adoption and the potential of their InTouch agreement and single-port opportunities in thoracic surgery. In addition, they may lack confidence in their ability to capitalize on long-term opportunities in China and improve instrument and accessory revenue. Finally, management may be concerned about procedure backlog accumulation and the impact of the pandemic on their France and Germany performance
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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