Intuitive Surgical's Preliminary Q4 Results Show Strong Procedure Recovery

We are maintaining our $182 fair value estimate for wide-moat Intuitive Surgical following management’s preliminary fourth-quarter and fiscal 2021 results ahead of the full earnings release on Jan. 20. Intuitive’s preliminary fourth-quarter revenue grew approximately 17% to $1.55 billion as worldwide da Vinci procedures increased by about 19% year over year. The company’s solid fourth quarter resulted in fiscal 2021 revenue of approximately $5.71 billion that grew at a compound annual growth rate (CAGR) of approximately 13% between 2019 and 2021 while the worldwide procedure volumes’ CAGR over the same period was approximately 14%. These preliminary results are in line with our model’s forecasts. We view shares as overvalued.