Intuitive Surgical earnings release and call disappoint analysts By

© Reuters. Intuitive Surgical (ISRG) earnings launch and name disappoint analysts

By Sam Boughedda 

Analysts had been downbeat following Intuitive Surgical’s (NASDAQ:) newest , which noticed it miss earnings and income consensus expectations.

BTIG analysts minimize their value goal on the inventory to $279 from $316, sustaining a Purchase ranking. They instructed traders in a be aware that the corporate’s Multiport “head-fake” tanked the corporate’s shares halfway by way of its earnings name.

The analysts defined that expectations for a next-gen multiport robotic system have been constructing for a number of quarters, and whereas ISRG had beforehand not explicitly commented on this, the corporate, on its earnings name, gave probably the most concrete proof that ISRG is engaged on a next-generation multiport system. Nevertheless, fairly than confirming expectations, administration pushed out timing past FY23, stated the analysts, who added that traders had been clearly hoping for an FY23 launch.

“Shares tanked, and we’re scratching our heads a bit as we attempt to perceive ISRG’s pondering,” the analysts wrote. ISRG shares are at present down greater than 5%.

Commented particularly on the corporate’s earnings, the analysts said: “In opposition to this backdrop, ISRG’s FY23 OpEx steering (~9% – 13% Y/Y development) is moderating vs. FY22 (OpEx grew 23%) and EPS will develop lastly. Additional with bettering process development in choose OUS markets, bettering utilization of Ion and Sp, and additional productiveness positive factors available on Xi, we expect ISRG may see process steering enhance by way of FY23.”

Stifel analysts additionally maintained a Purchase ranking on ISRG, decreasing the agency’s value goal on the inventory to $285 from $300 per share.

The analysts stated in a be aware that the agency’s new $6.85B 2023 top-line projection falls beneath the prior Stifel/Consensus ~$7B attributable to lingering China COVID headwinds and “traditionally accountable'” start-of-year information.

“Our new $5.25 EPS projection additionally falls beneath prior Stifel/Consensus $5.50/$5.40 per share. The 2023 yr can also be more likely to begin slowly for Intuitive as the primary quarter faces challenges from lingering China Covid process headwinds, ongoing provide chain pressures, and better value stock flowing by way of the 1H23 COGS line,” said the analysts.

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