The 10-second takeaway
For the quarter ended Dec. 31 (Q4), MAKO Surgical beat expectations on revenue and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP loss per share dropped.
Margins improved across the board.
MAKO Surgical reported revenue of $32.9 million. The six analysts polled by S&P Capital IQ expected to see a top line of $30.2 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $14.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.14. The seven earnings estimates compiled by S&P Capital IQ forecast -$0.14 per share. GAAP EPS were -$0.14 for Q4 versus -$0.26 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 68.1%, 960 basis points better than the prior-year quarter. Operating margin was -17.1%, 4,970 basis points better than the prior-year quarter. Net margin was -17.0%, 4,940 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $24.6 million. On the bottom line, the average EPS estimate is -$0.18.
Next year's average estimate for revenue is $130.8 million. The average EPS estimate is -$0.43.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 716 members out of 744 rating the stock outperform, and 28 members rating it underperform. Among 201 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 194 give MAKO Surgical a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MAKO Surgical is outperform, with an average price target of $33.75.
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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 owns shares of MAKO Surgical. Motley Fool newsletter services have recommended buying shares of 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