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$Intuitive Surgical(ISRG)$ $Semiconductor Bull 3X Shares(SOXL)$   

Intuitive Surgical (ISRG) is one of my top choices among medical device companies and is my preferred stock to gain exposure in the healthcare sector.

ISRG is a pioneer in robotic-assisted minimally invasive surgery, revolutionizing the healthcare landscape. Renowned for its da Vinci Surgical System, ISRG develops and manufactures advanced surgical platforms designed to enhance precision, control, and efficiency in complex procedures across various medical specialties.

4Q23 solid beat!

Following the market closure today, ISRG announced fourth-quarter revenues of 1.93 billion dollars, marking a 17% increase, surpassing the expected Wallstreet’s estimate of 1.87 billion dollars.

Revenue from Instruments & Accessories totalled $1.144 billion, in-lined with market expectations, primarily driven by increased procedure volumes and improved I&I pricing, although there was some impact from customer ordering patterns. System revenue reached $480 million, surpassing the market estimate of $421 million, while Services revenue also slightly exceeded consensus at $304 million compared to the expected $300 million.

Throughout the quarter, ISRG successfully placed 415 systems (compared to the Street's projection of 344), marking a 12% increase, with 94 units attributed to trade-ins, split between 41 in the US and 53 internationally, while the rest represented new placements. Additionally, there were 201 systems placed under operating leases during the quarter, reflecting a 31% increase.

Procedure growth was also solid at 21%, slightly above the anticipated Street figure of approximately 19%. Furthermore, the 2024 procedural guidance also far exceeded expectations, indicating a year-on-year growth of 13-16%, outperforming the Street's prediction of around 11-15%.

Conclusion: multi-decade growth story!

Given its seasoned management team, extensive experience spanning decades, and cutting-edge robotic technology, Intuitive Surgical is the most strategically positioned company within the rapidly expanding and substantially untapped realm of soft-tissue robotics.

The company's leading-edge da Vinci Xi, complemented by the newer SP and Ion models, will continue to steer double-digit growth in both sales and procedures going forward. Looking further ahead, considering a prospective penetration of approximately 30% within an addressable opportunity of roughly 6 million procedures (with about 1.8 million da Vinci procedures conducted in 2022), a considerable growth trajectory remains significantly untapped.

Overall, the introduction of new systems and the approval of additional procedure categories are expected to generate a highly advantageous cycle for future expansion, marking just the beginning of ISRG's growth narrative in this domain.

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