Can Intuitive Surgical's Q2 Slow Its Declining Revenue?

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Key question for Intuitive Surgical Inc.,
ISRG
set to post earnings after the close Tuesday: How much revenue has continued its decline in the face of weaker demand for the company's robotic surgical instruments? Wall Street expects earnings of $2.83 a share, on revenue of $501.7 million, compared with year-earlier profits of $3.90 a share on revenue of $578.50. Intuitive said in April that Obama Care had resulted in lower sales for its da Vinci robots, at a price of up to $2.3 million each. First-quarter sales fell 59% on weaker demand for some of the procedures that can typically employ the company's products. S&P Capital IQ's Jeffrey Loo recently took the unimpressive step Tuesday of upgrading Intuitive to Sell, from Strong Sell. Loo said increasing preference by doctors for conservative treatment over surgery, plus financial uncertainty of hospitals, results in "a continuing challenging environment for Intuitive. Also weighing on its outlook is fall out to its reputation from recalls of one of its surgical scissors last year. The company took a first-quarter $67 million charge to settle legal claims related to the product. In April the company obtained U.S. marketing clearance for a new version of its core system called the da Vinci Xi. Intuitive Technology is down nearly 7 percent in the past three months. Recently, it traded at $393.20, up more than 1 percent.
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