ParkwayLife REIT and Intuitive Surgical: Q3 2024 Earnings Roundup
ParkwayLife REIT (SGX: C2PU), or PLife, and Intuitive Surgical, Inc (NASDAQ: ISRG) were among the first major holdings to report their quarterly earnings for the final quarter of 2024. Both companies operate in the healthcare sector but offer distinct services. PLife focuses on providing real estate for healthcare services, while Intuitive specializes in robotic-assisted, minimally invasive surgery.
Parkway Life REIT: Another Steadfast Quarter
PLife’s Q3 2024 business update met expectations, with revenue and net property income slightly declining due to the depreciation of the Japanese Yen. However, their distribution per unit (DPU) increased by 1.6% year-on-year to S$0.0376 for the quarter, reaching S$0.113 for the 9-month period. Anticipated FY2024 DPU is expected to hit a record high of S$0.15, offering a yield of 3.7%, higher than Singapore Savings Bonds interest rate. Considering the steady performance and projected DPU increase in FY2026, maintaining a stake in PLife seems prudent.
Intuitive Surgical: Growth Gaining Traction
Intuitive reported strong earnings in Q3 2024, driven by increased placements of systems and procedures, leading to a 17% YOY revenue growth. Their EPS surged by 34% to US$1.56, showcasing promising growth potential in the coming years. Intuitive’s innovative products and expanding geographical footprint are contributing to increased recurring revenue from a higher installed base.
Is It Expensive?
Although Intuitive trades at a high PE ratio of 84 times, historical data shows the company commands a premium valuation. Despite selling part of holdings in 2023 due to elevated PE, the current more attractive valuation and improved earnings justify holding onto remaining shares. The expected decrease in PE ratio to 68 times next year, coupled with strong growth prospects, makes Intuitive an appealing investment option.
In conclusion, both PLife and Intuitive Surgical demonstrate resilience and growth potential in their respective fields. Investors should consider the steady performance of PLife and the expanding presence of Intuitive Surgical when making investment decisions. Stay informed and explore further opportunities for financial growth and independence.
