Will Intuitive Surgical (ISRG) Beat Estimates Again in its Next Earnings Report?

Have you been looking for a stock that could be well-positioned to extend its winning streak in the upcoming report? It's worth considering Intuitive Surgical, Inc. (ISRG), which belongs to the Zacks Medical – Instruments industry.

This company has enjoyed a nice streak of earnings estimates, especially when looking at the previous two reports. The average surprise over the last two quarters was 11.74%.

For the most recent quarter, Intuitive Surgical was expected to report earnings of $1.53 per share, but it reported earnings of $1.78 per share instead, representing a surprise of 16.34%. For the previous quarter, the consensus estimate was $1.40 per share, while the actual earnings were $1.50 per share, a surprise of 7.14%.

Given this earnings trend, recent estimates for Intuitive Surgical have increased. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which bodes well for earnings growth, especially when you combine this metric with the nice Zacks Rank.

Our research shows that stocks with a combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter. The most accurate estimate is a version of the Zacks Consensus, the definition of which is based on changes. The idea is that analysts who revise their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others who contributed to the consensus had previously predicted.

Intuitive Surgical currently has an Earnings ESP of +0.06%, suggesting that analysts have become more optimistic about its near-term profit potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat may be on the way. The company's next earnings report is scheduled for October 17, 2024.

With the Earnings ESP metric, it is important to note that a negative value reduces its predictive power; However, a negative ESP does not indicate a loss of profit.

Many companies end up beating consensus EPS estimates, although that's not the only reason their stocks are rising. Additionally, some stocks could remain stable even if they end up missing the consensus estimate.

For this reason, it is very important to check a company's ESP before its quarterly release to increase the chances of success. Make sure to use our Earnings ESP filter to find the best stocks to buy or sell before they are reported.

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