Intuitive Surgical placed a record 493 da Vinci systems in the fourth quarter of 2024, marking a 19% increase from the previous year.
The launch of the da Vinci 5 system contributed significantly to a 36.5% increase in System segment sales, reaching $655 million.
Despite a high P/E ratio of 90.84 and a price-to-sales ratio of 25.93, Intuitive Surgical’s strong financial performance and market position indicate potential for future growth.
Intuitive Surgical Inc. (NASDAQ:ISRG) is a leader in robotic-assisted surgery, known for its da Vinci Surgical System. The company has seen significant growth, driven by the strong performance of its da Vinci portfolio. In the fourth quarter of 2024, Intuitive Surgical placed a record 493 systems, a 19% increase from the previous year, highlighting the growing demand for its innovative surgical solutions.
The da Vinci 5 system, launched in March 2024, has been a key driver of this growth, with 174 systems placed in the fourth quarter alone. This system, along with the Ion and SP platforms, has contributed to a 36.5% increase in the System segment’s sales, reaching $655 million. The strong market uptake of these systems underscores Intuitive Surgical’s robust market position and the increasing adoption of its technology.
Intuitive Surgical’s financial performance in the fourth quarter of 2024 was impressive, with revenues reaching $2.4 billion and adjusted earnings per share of $2.21. These figures surpassed market expectations, driven by an 18% year-over-year increase in global da Vinci procedure volume. The company’s revenue growth of 25% year-over-year further highlights its strong market presence and the success of its da Vinci systems.
Despite the positive financial results, ISRG’s stock experienced a decline. The stock has a high price-to-earnings (P/E) ratio of 90.84 and a price-to-sales ratio of 25.93, indicating that it may be overvalued compared to its earnings and sales. However, the company’s strong liquidity position, with a current ratio of 4.30, provides a buffer against potential financial challenges.
For investors seeking diversification, the High-Quality portfolio, which has consistently outperformed the S&P 500, may be worth considering. Intuitive Surgical’s strong fourth-quarter results and the increasing adoption of its da Vinci systems position the company well for future growth, despite the challenges it faces in certain international markets.
