Intuitive Surgical (ISRG) is scheduled to report results of its third fiscal quarter after the market close on October 19, with a conference call scheduled for 4:30 pm EDT. What to watch for 1. PROCEDURAL GROWTH: Along with its second quarter report, Intuitive Surgical specified its much-watched procedural growth view for its daVinci system to 14%-15% from 12%-14% for 2017. On its Q2 conference call, the company said it anticipates contributions from China and Japan to temper. Intuitive added that the average selling price will vary quarter-to-quarter, adding that it anticipates the system selling price to continue to trend gradually lower in the back half of 2017. The company raised its FY17 pro-forma gross profit margin to 71%-75% of net revenue from 69%-71%. 2. TRANSENTERIX RIVALRY: Shortly after its last earnings report, back in late July, Barclays analyst Matthew Taylor said one of the only reasons for concern is the potential for competition. Just last week, a smaller rival in the robotic surgery space, TransEnterix (TRXC) got FDA clearance for its Senhance System, a new robotically-assisted surgical device that can help facilitate minimally invasive surgery. Shares of Intuitive dipped on the news. Citi analyst Amit Hazan came to Intuitive’s rescue in a research note out the next day. Hazen argued that the FDA approval of TransEnterix’s Senhance Surgical Robotic System should be viewed far less in the context of a competitive threat to Intuitive Surgical’s da Vinci and more of another sign that the FDA has “eased its bar” for approval. The TransEnterix Senhance system is “at least currently not in the same league as da Vinci,” Hazan told investors in a research note titled “Intuitive’s First US Competitor Arrives, Sort Of.” He admitted, however, that Intuitive is increasingly likely to see new competition, from Medtronic (MDT) first and then Johnson & Johnson’s (JNJ) joint venture “much later,” on time or earlier than expected. Hazan still expects Intuitive to dominate, however, and kept a Buy rating on the shares. The stock sold off 3% in after-hours trading on the Friday following TransEnterix’s announcement. DEMOGRAPHICS: Baby Boomers and Millenials are aging and with that Intuitive Surgical should benefit from an increased need for procedures including radical prostatectomies for Baby Boomer males diagnosed with prostate cancer. Hysterectomy is a common surgical procedure that employs the company’s da Vinci machine and with the aging of millennial women, Intuitive stands to benefit.