Fear Infects Intuitive Surgical, Inc. (ISRG)’s Future

Other troubles are circling. Questions over the da Vinci’s effectiveness over traditional surgeries in gynecological procedures have hounded the firm recently, particularly as some health-care experts cite the da Vinci’s cost as a drawback when compared to ordinary surgeries. According to Intuitive, gynecological procedures are slowing and hurting overall procedural growth, which the company expects to increase by 15% to 18% this year — far below analyst expectations of 20% to 23% full-year procedural growth. The cost per system is also hampering Intuitive’s future sales, given the current poor economic climate that’s hit hospital budgets badly. It’s harder for Intuitive to justify paying big money for a new machine with all the questions around it.

There’s still reason for optimism
Ultimately, this company’s still the innovative star it’s always been. If Intuitive can weather this storm, I’m confident that the stock can bounce back — although the company’s astronomical growth of the past may be over. However, Intuitive’s near future is murky. Thursday’s earnings miss will only intensify criticisms of the company’s future and the da Vinci system’s potential, and while the FDA’s warning may be nothing new, Intuitive’s still facing plenty of legal trouble that it will have to overcome.

Intuitive Surgical, Inc. (NASDAQ:ISRG)’s long-term future has been shaken, but not truly endangered, by the company’s recent woes. However, these fears won’t go away soon, and expect them to leave a dent on this stock in the near future. Get ready for a volatile, bumpy read ahead.

The article Fear Infects Intuitive Surgical’s Future originally appeared on Fool.com and is written by Dan Carroll.

Fool contributor Dan Carroll has no position in any stocks mentioned. The Motley Fool recommends Intuitive Surgical. The Motley Fool owns shares of Intuitive Surgical.

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