There is a definite lack of exciting growth stories in medical devices these days, and that is certainly part of the attraction of surgical robot maker Intuitive Surgical (Nasdaq:ISRG). Of course, a monopoly position in a potentially huge market and demonstrated improvements in patient outcomes does not hurt either.
The question is, though, will investors continue to willingly pay such a premium for the shares with current growth rates?
A Quarter that Isn't as Strong as It Looks
Intuitive once again surpassed the average revenue estimate, and 18% overall growth is not bad. What's more, instrument revenue growth of 28% was quite good and procedure growth of 30% clearly shows that the daVinci system is gaining share in its targeted procedure base.
On the other hand, system revenue rose less than 8% and the company booked 88 net new placements this quarter - continuing a fairly unimpressive recent trend of net placements. What's more, ASPs fell again - dropping 5% from last year and about 2% from the fourth quarter. Ironically, analysts used to fret when system growth was strong and instrument/procedure growth was not so impressive - now they have it the other way around and are still complaining. (For more, see Med-Tech Choice Is Simply Intuitive.
To continue, please click the link:
http://stocks.investopedia.
No comments:
Post a Comment