INTUITIVE SURGICAL $537.18 (Nasdaq symbol ISRG; TSINetwork Rating: Average) (515-507-5000; www.intuitivesurgical.com; Shares outstanding: 39.7 million; Market cap: $21.3 billion; No dividends paid) earned $143.5 million, or $3.63 a share, in the three months ended March 31, 2012. That’s up sharply from $104.2 million, or $2.66 a share, a year earlier. Revenue rose 27.6%, to $495.2 million from $388.1 million.
Revenue from replenishable supplies rose 32.0%. Intuitive gets almost 40% of its revenue from steady sales of replacement parts, training and other services. That cuts its risk. The company is debt-free, and holds cash of $2.4 billion, or $60.61 a share.
Intuitive’s long-term outlook is positive. However, the stock has moved up 68% since August 2011. It now trades at 38.4 times the $14 a share that the company will likely earn in 2012.
Intuitive Surgical is a hold.