INTUITIVE SURGICAL $549.36 (Nasdaq symbol ISRG; TSINetwork Rating: Average) (515-507-5000; www.intuitivesurgical.com; Shares outstanding: 39.7 million; Market cap: $21.8 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, and helps cut a patient’s recovery time and post-operative discomfort. It also reduces scarring and infection risk.
In the three months ended March 31, 2012, Intuitive earned $143.5 million, or $3.63 a share. That’s up 37.8% from $104.1 million, or $2.66 a share, a year earlier. Revenue rose 27.6%, to $495.2 million from $388.1 million. Intuitive is debt-free, and holds cash of $2.4 billion, or $60.45 a share.
Revenue from replenishable supplies rose 32.0%. Intuitive gets almost 40% of its revenue from stable and dependable sales of replacement parts, training and other services. That cuts its risk.
International sales keep rising
Intuitive continues to expand steadily overseas, particularly in Europe, South Korea and Japan. On April 1, 2012, the company received government reimbursement approval for prostatectomy procedures in Japan, a key step forward. Intuitive is expecting slower growth in Europe this year, however.
The company’s long-term outlook is positive. But the stock has moved up 71.7% since August 2011, and it now trades at over 37.2 times the $14.75 a share that Intuitive will likely earn in 2012.
Intuitive Surgical is a hold.
