MAKO Surgical Misses on the Top and Bottom Lines

MAKO Surgical (Nasdaq: MAKO  ) reported earnings on Feb. 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), MAKO Surgical missed estimates on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted. GAAP loss per share dropped.

Margins dropped across the board.

Revenue details
MAKO Surgical reported revenue of $30.2 million. The seven analysts polled by S&P Capital IQ foresaw a top line of $31.4 million on the same basis. GAAP reported sales were 8.1% lower than the prior-year quarter's $32.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.13. The nine earnings estimates compiled by S&P Capital IQ predicted -$0.11 per share. GAAP EPS were -$0.13 for Q4 versus -$0.14 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 67.0%, 110 basis points worse than the prior-year quarter. Operating margin was -19.6%, 250 basis points worse than the prior-year quarter. Net margin was -19.0%, 200 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $26.2 million. On the bottom line, the average EPS estimate is -$0.17.

Next year's average estimate for revenue is $131.8 million. The average EPS estimate is -$0.50.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,181 members out of 1,222 rating the stock outperform, and 41 members rating it underperform. Among 275 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 266 give MAKO Surgical a green thumbs-up, and nine give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MAKO Surgical is hold, with an average price target of $17.43.

Is MAKO Surgical the best health care stock for you? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average health care logistics company. Click here for instant access to this free report.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends MAKO Surgical. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (1) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 27, 2013, at 10:33 AM, obga18 wrote:

    get in while the getting is good, i promise you this wont be on sale for long.

Add your comment.

DocumentId: 2280719, ~/Articles/ArticleHandler.aspx, 4/20/2014 5:56:58 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement