In its recent Q1 earnings call, Intuitive Surgical (ISRG, Financial) provided several key financial forecasts and strategic insights. The company anticipates a fiscal year 2025 tax rate ranging from 22% to 23%. Moreover, the gross margin is projected to be between 65% and 66.5% of revenue.
The rollout of the da Vinci five surgical system has progressed as anticipated, demonstrating significant traction in the U.S. market. However, Intuitive Surgical is still navigating regulatory procedures in Japan and expects to receive feedback from European regulators in 2025.
The company faces a projected impact on additional cost of sales by 1.7% of revenue, with a margin of error of plus or minus 30 basis points. Furthermore, the effects of increased tariffs are expected to grow each quarter for the remainder of the year.
Despite these challenges, Intuitive Surgical is considering various mitigating strategies, though it does not foresee these measures having a substantial impact in 2025.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 26 analysts, the average target price for Intuitive Surgical Inc (ISRG, Financial) is $624.07 with a high estimate of $700.00 and a low estimate of $510.00. The average target implies an upside of 30.36% from the current price of $478.74. More detailed estimate data can be found on the Intuitive Surgical Inc (ISRG) Forecast page.
Based on the consensus recommendation from 33 brokerage firms, Intuitive Surgical Inc's (ISRG, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Intuitive Surgical Inc (ISRG, Financial) in one year is $485.45, suggesting a upside of 1.4% from the current price of $478.74. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Intuitive Surgical Inc (ISRG) Summary page.
