During the last year, the maker of robotic surgical devices, Intuitive Surgical Inc. (ISRG), has grown by more than 35%. Any buyers are of the view that stocks are too pricey. Intuitive Surgical’s history, though, is a tale of long-term growth, so even the current high price can be a start to growth.
The financial results of Intuitive Surgical over the past quarter were somewhat misleading to investors. Thus, revenues fell year-on-year by 4.5 percent and income by 21 percent year-on-year. The cause for the decrease, though, is linked to the specifics of medical treatment during the pandemic of COVID-19.
As a rule, owing to the massive influx of coronavirus travelers and the workload of physicians, scheduled procedures have been cancelled or delayed until a later date. In comparison, health services have limited their expenses for buying new supplies, relying only on what is most needed during the pandemic. As a result, compared to 2019, 29 percent fewer Da Vinci robotic surgical kits were delivered in the third quarter.
Nearly all of the complexities of Intuitive Surgical, however, are temporary. The pressure on hospitals will reduce as compulsory vaccination is implemented, normal procedures will return, and hospital resources will once again be open to the procurement of new equipment. Thus, as society returns to proper functioning, Intuitive Surgical will eventually continue to restart its growth curve.
The new Da Vinci systems will have to be installed by Intuitive Surgical, each requiring repair contracts and a steady flow of disposable instruments. This suggests that the company continues to broaden its number of clients even under negative circumstances. In addition to this, Intuitive Surgical has a variety of long-term beneficial factors: an improvement in life expectancy and more regular demand for “age-related” operations, as well as an extension of the list of procedures in which Da Vinci can be used.
Shares of Intuitive Surgical, Inc. (ISRG) fell on Monday by -2.21% to end the trading at $800.