Daily Brief Health Care: Tokyo Stock Exchange Tokyo Price Index Topix, Intuitive Surgical and more

In today’s briefing:

Simply Returning Profits to Shareholders Will Increase Gap in Valuations Among Companies
Intuitive Surgical (ISRG US): Q2 2022 Results Missed Expectations; Raised Procedure Growth Guidance

Simply Returning Profits to Shareholders Will Increase Gap in Valuations Among Companies

It can be said that companies that do not specify cash allocation and only execute shareholder return, thus encouraging shareholders to find and invest in reinvestment targets on their own.
Since the stock valuations of companies as a whole haven’t increased, investment capital has gone to a few companies with high profitability, raising gap between profitability and valuations among companies.
If the information asymmetry between management and investors could be bridged, even changes in the capital structure could have an impact on stock prices.

Intuitive Surgical (ISRG US) reported Q2 results, which missed expectations. Overall performance was impacted by COVID-19 resurgence and macro headwinds including inflation and supply chain constraint.
Despite lockdowns in its second biggest market of China, the company reported worldwide da Vinci procedures growth of 14% y/y, in-line with earlier full-year guidance range of 12–16%.
With China showing signs of recovery, Intuitive now expects worldwide da Vinci procedures to grow 14.0–16.5% in 2022. However, soft U.S. hospital capex remains an area of concern.

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