Is Earnings Growth of Intuitive Surgical (ISRG) Lower Than Expected?

Polen Capital, an investment management company, released its “Polen Focus Growth Strategy” third-quarter 2022 investor letter. A copy of the same can be downloaded here. The fund returned -5.47% net in the third quarter compared to -3.60% return for the Russell 1000 Growth Index and -4.88% return for the S&P 500 Index. Inflation and interest rate hikes caused a decline in the fund’s performance in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Polen Capital highlighted stocks like Intuitive Surgical, Inc. (NASDAQ:ISRG) in the third quarter 2022 investor letter. Headquartered in Sunnyvale, California, Intuitive Surgical, Inc. (NASDAQ:ISRG) manufactures and markets da Vinci Surgical System. On October 20, 2022, Intuitive Surgical, Inc. (NASDAQ:ISRG) stock closed at $212.00 per share. One-month return of Intuitive Surgical, Inc. (NASDAQ:ISRG) was 10.95% and its shares lost 37.58% of their value over the last 52 weeks. Intuitive Surgical, Inc. (NASDAQ:ISRG) has a market capitalization of $75.708 billion.

Polen Capital made the following comment about Intuitive Surgical, Inc. (NASDAQ:ISRG) in its Q3 2022 investor letter:

“Our sale of Intuitive Surgical, Inc. (NASDAQ:ISRG) reflected our concern that the company’s earnings growth over the next few years was likely to be somewhat lower than we would hope. Hospital and government capital budgets are coming under pressure from wage and supply chain inflation that they cannot readily pass on to patients and insurers. At the same time, the installed base of Da Vinci robots left to upgrade to new systems is low. If that slower growth view plays out, it would be difficult to get the double-digit annualized return we require, given the company’s higher valuation relative to most other companies in the Portfolio as of now.”

Pixabay/Public Domain

Intuitive Surgical, Inc. (NASDAQ:ISRG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. Intuitive Surgical, Inc. (NASDAQ:ISRG) was held by 56 hedge fund portfolios at the end of the second quarter, down from 65 the previous quarter, according to our database.

We discussed Intuitive Surgical, Inc. (NASDAQ:ISRG) in another article and shared Baron Funds’ views on the company. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.