Refocusing my energy on the underlying businesses instead of the market movement. Let’s start with Intuitive Surgical and Tractor Supply which just reported their Q3 results last week.

ISRG Q3 revenue is up by 11% to $1.56b with flat non-GAAP EPS of $1.19 and GAAP EPS down by 15% at $0.90. Given that the share is trading at a hefty PE of 58, the numbers do not look impressive. However, to achieve the above under the current the macro headwinds, it is not too bad. What caught my attention is that they are growing in various procedures and there seem to be good potential of the new ION system. They also seem to be doing well in various regions which is crucial in their next growth phase as only 20% of their revenue is currently coming from outside US. The company has indicated a slower operating spending from 2023 which means that if they can sustain their revenue growth, then EPS will get a boost!

You can read the earning call transcript to get more information.

TSCO Q3 revenue is up by 8.4% to 3.27b with EPS up by 7.7% to $2.10. While the growth isn’t as impressive as last year’s number, it’s still a good achievement to get 10 quarters of consecutive growth! And the management sounded positive about the momentum going into the next quarter and plan to get 8% to 11% growth for 2023’s EPS. The latest development is the acquisition of Orscheln and that will contribute partly to 2023 growth.

You can read the earning call transcript to get more information.

I am satisfied with the latest development in both companies and I will stay vested with them. At the time of writing, ISRG occupies about 2.8% of my portfolio and TSCO occupies 2.1%.

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