INTUITIVE SURGICAL $510 (Nasdaq symbol ISRG; TSINetwork Rating: Average) (515-507-5000; www.intuitivesurgical.com; Shares outstanding: 40.2 million; Market cap: $20.5 billion; No dividends paid) makes the da Vinci, a computerized surgical system.
Guided by a miniature camera connected to a 3-D monitor, surgeons use the da Vinci to operate by remotely manipulating tiny robotic arms. This process is safer and much less invasive than regular surgery. It helps cut patient recovery time and post-operative discomfort. It also reduces scarring and infection risk.
In the three months ended March 31, 2013, Intuitive earned $188.9 million, or $4.56 a share. That’s up 31.6% from $143.5 million, or $3.50 a share, a year earlier. Revenue rose 23.5%, to $611.4 million from $495.2 million. Intuitive is debt-free and holds cash of $3.1 billion, or $77.51 a share.
Revenue from replenishable supplies rose 23.2%. Intuitive gets over 58% of its revenue from stable and dependable sales of replacement parts, training and other services. That cuts its risk.
Lawsuit win a relief for Intuitive
The shares have fallen from as high as $586 in February 2013, mostly on concerns about legal liabilities facing the company due to complications that may have arisen with da Vinci surgeries.
Patients have brought 26 lawsuits against Intuitive, claiming injuries caused by the da Vinci or inadequate surgeon training. However, Intuitive has just won the first these lawsuits, which improves its chances of success with the remaining ones. Still, investor concerns could hold back the shares in the near term.
Intuitive Surgical is a hold.
