ISRG - Embedded Expectations Analysis - 2021 08 31
Intuitive Surgical, Inc. (ISRG:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 64.4x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may have concerns about procedural growth, clinical trial progress, and their extended use instruments.Specifically, management may lack confidence in their ability to sustain procedural growth rate improvements, maintain strong Da Vinci capacity utilization, and finalize leasing and alternative financing arrangements for customers. Additionally, they may be concerned about the pandemic's impact on their clinical trial programs, the benefit of their extended use instruments, and supply chain headwinds. Also, management may be downplaying concerns about the potential negative per-unit revenue impact of customer purchasing patterns reflecting the extended use program, and they may be overstating patient confidence. Furthermore, they may have concerns about the utility of their My Intuitive app, the quality of their solutions for Bariatrics procedures, and the pace of their R&D spending recovery. Finally, they may be downplaying concerns about resurgent COVID-19 hospitalizations putting further pressure on their business.
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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