Intuitive Surgical's huge revenue drop
The company surprised analysts with sales that plunged from a year earlier. Is this stock in trouble?
However, in Thursday's Stock of the Day, Motley Fool analyst Sara Hov says she doesn't see the news as all bad.
Part of that precipitous drop was $26 million in deferred revenue, which inflated the bad news a bit.
The good news for the company however is that the FDA just approved its newest surgical robot system last week, the da Vinci Xi, which is a considerable upgrade both in terms of usability and capability from its previous model. Investors are hopeful that the new system can help the company expand into more complicated surgeries and wider use of its surgical robots.
Sara sees that part of the thesis as key in deciding whether this stock is a buy today. If the new system succeeds in gaining the company wider adoption of its systems, then yesterday's pullback could represent a good buying opportunity for Intuitive Surgical investors.
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4 analysts downgrade the stock the day after a disappointing quarterly report.
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