NEW YORK (TheStreet) -- Shares of Intuitive Surgical Inc. (ISRG) are down 7.2% to $454.42 after the company estimated lower first quarter 2014 revenue as a result of a 59% decline in sales of its main da Vinci robot system.
Revenue for the first quarter of 2014 is anticipated to be about $465 million, down 24%, compared with $611 million for the first quarter of 2013
Intuitive said, " Preliminary first quarter 2014 da Vinci Surgical Systems revenue is expected to decrease approximately 59% to approximately $106 million compared with $256 million during the first quarter of 2013. Lower systems revenue is due primarily to lower system sales in the U.S" as well as some revenue deferrals.
TheStreet Ratings team rates INTUITIVE SURGICAL INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate INTUITIVE SURGICAL INC (ISRG) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."