Navellier Growth: your source for market-beating growth stocks

 

What is causing ISRG to tank after an excellent quarterly report?  I don’t understand it. Thanks.

Intuitive Surgical (ISRG) recently announced that their first quarter Da Vinci operating systems sales rose 76% to $99.1 million, while its sales for instruments and accessories rose 54% to $61.9 million, compared to the same quarter a year ago.  During the same period, the company’s first quarter earnings rose 80.6% to $44.8 million or $1.12 per share compared to $23.8 million or 62 cents per share.  The analyst community, on average, expected earnings of 98 cents a share on $178.2 million in sales, so the stock posted a 14.3% earnings surprise and a 10% sales disappointment based on total sales of $161 million.  Additionally, ntuitive Surgical raised its forecast for 2008 sales growth but not to the extent that the analyst community expected.  Specifically, the company’s new 2008 sales guidance is $853.2 million in sales. The analyst community expected $857.3 million in sales.  The disappointing first quarter sales and 2008 sales forecast is why the stock was hit with profit taking, regardless of excellent earnings growth.  Trading volume associated with the recent selling pressure in the stock is drying up a bit, so I expect that Intuitive Surgical will settle down soon.  Obviously, the stock still has stunning sales and earnings and is a very powerful growth stock that I continue to recommend due to its A-grade in PortfolioGrader Pro.  In my opinion, the stock is an outstanding near-term buy!

Q&A Archive

• Q&A on Investing the Navellier Growth Way
• Q&A on Today's Market
• Q&A on Specific Stocks