Intuitive Surgical, Inc., iRobot Corporation: Earnings Preview

Intuitive Surgical, Inc. (NASDAQ:ISRG) and iRobot Corporation (NASDAQ:IRBT) are scheduled to report their respective June quarter results on Tuesday, July 22 after the bell. Intuitive Surgical shares jumped 2.04% to $396.65 in pre-market trading Tuesday. It indicates that investors expect the company to report strong results that could fuel a rebound in the stock. Shares of the surgical instrument maker have declined 11.5% in the past six months.

Intuitive Surgical, Inc., iRobot Corporation: Earnings Preview

Intuitive Surgical earnings preview

Wall Street expects Intuitive Surgical’s June quarter earnings to decline from $3.90 to $2.93 per share. Analysts also expect revenues to fall 13.30% from $578.5 million to $501.70 million. The Sunnyvale-based company’s business model allows it to generate recurring revenues after the initial sale of its da Vinci Surgical Systems.

However, the company faces the risk of low capital spending by hospitals, especially during the changes resulting from the health reform. Intuitive Surgical’s newly launched da Vinci Xi recently won the USFDA approval. For the full year, analysts expect the company’s revenues to shrink 9.20% from $2.27 billion to $2.06 billion. Full-year earnings are expected to decline from $16.73 to $11.81 per share.

iRobot Q2 earnings preview

Analysts expect iRobot to report 22 cents in non-GAAP earnings per share for the second quarter, down from 28 cents in the same quarter last year. However, analysts are optimistic about its revenues. They expect Q2 revenues to jump 9.30% YoY from $130.36 million to $142.51 million. The robotics company’s own guidance calls for $138-$145 million in revenues and $0.15-$0.25 in earnings per share. For the full year, analysts forecast iRobot’s revenues to surge 15.90% to $564.79 million. Analysts expect full-year earnings to rise from $0.94 per share to $1.11.

iRobot has topped the Wall Street earnings expectations in the past four consecutive quarters. Last week, JPMorgan reaffirmed its Neutral rating on the stock, though it raised the price target from $33 to $36.50. Anyway, iRobot shares have already surpassed JPMorgan’s price objective as the stock jumped 2.93% on Monday to close at $37.58.

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