Why MAKO Surgical Shares Dipped Then Rebounded

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of robotic surgery device maker MAKO Surgical (UNKNOWN: MAKO.DL  ) fell as much as 14% following the release of select fourth-quarter earnings data -- although, shares have rebounded to be lower by only 4.5% as of this writing.

So what: MAKO is actually presenting at the JPMorgan Healthcare Conference on Wednesday and is widely expected to release its full-year results then. However, the data divulged today shows that MAKO sold 15 Robotic Arm Interactive Orthopedic systems, or RIOs, during the quarter, matching its total in the third quarter, and hitting the midpoint of its annual range of 42 to 48 systems. Also, MAKOplasty procedures rose by 20% over the sequential quarter to 2,904, and are 29% higher than the year-ago quarter.

Now what: Given that Intuitive Surgical (NASDAQ: ISRG  ) has had such resounding success with its da Vinci surgical system, everyone just sort of expected that MAKO would be a genuine competitor for Intuitive. Unfortunately, it hasn't worked out that way, and investors once again seem disappointed that MAKO merely met the midpoint of its own guidance. The rollout of MAKO's RIO system takes quite a bit of time and a lot of physician training, so patience is going to be required by investors in the meantime. I'll keep my eye on MAKO at these levels, but I'm clearly sold on Intuitive's growth and near-monopoly on the robotic surgery sector in the interim.

The recent market sell-off of MAKO Surgical shares has many wondering whether its potential growth prospects make this stock a buy or a stock to stay away from. To answer this question, Fool.com analyst and MAKO expert David Meier has authored a premium research report covering all of the must-know details on the company, including key areas to watch and risks looming in the future. As an added bonus, David will keep you informed with a full year of updates and guidance on MAKO Surgical as news breaks. Click here now to learn more and start reading.


Read/Post Comments (4) | Recommend This Article (8)

Comments from our Foolish Readers

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  • Report this Comment On January 07, 2013, at 2:37 PM, davaidesign wrote:

    "MAKO would be a genuine competitor for Intuitive"

    Yes, but what if they vegetable spooned her pretense in a moon for sale yesteryear? That makes more sense.

  • Report this Comment On January 07, 2013, at 6:17 PM, earthunit wrote:

    What are you talking about? MAKO is NOT a competitor of ISRG! Two different markets. ISRG is basically for SOFT tissue diseases and MAKO is for BONE! Do some research so you don't always sound like an azz, or worse, a crook.

  • Report this Comment On January 08, 2013, at 12:50 AM, huibs wrote:

    ..not to pile on, but really??...ISRG vs MAKO??..

    ..I would imagine the only thing these two robots would compete with is guitar plucking..

    ..or maybe tidilywinks..

    ..or I know, boondoggle, yeah that's it...ISRG vs. MAKO in a boondoggle tournament..

  • Report this Comment On January 08, 2013, at 10:48 AM, MissyDeee wrote:

    I am BIG on MAKO because I just had this surgery done on Dec. 12th. I flew to Naples, Florida to specifically get mine done at the Robotic Joint Replacement Center, surgeon Dr. Buechel. Why?

    1) everything done in one building, all prelims

    2) outpatient surgery...in at 7am and was out before 3pm

    3) recovered in Florida for 1 week

    4) flew home to Indiana and finished recovery and rehap at home.

    5) even getting both knees (partial knee replacement) I never needed help going to the bathroom or showering.

    6) no staples, was able to shower next day.

    7) low to no risk of infection

    8) minimal need for strong pain killers (I only used them at night after the first week.)

    Word of this LESS invasive, QUICKER recovery process is going to cause a market demand for this procedure. I have friends that are taking notes and making plans to get their knees done in Florida...great experience for me (and you don't hear that much when it comes to knee surgery.) Marcy.

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