The 10-second takeaway
For the quarter ended March 31 (Q1), MAKO Surgical whiffed on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP loss per share increased.
Margins improved across the board.
MAKO Surgical reported revenue of $19.6 million. The eight analysts polled by S&P Capital IQ looked for a top line of $23.6 million on the same basis. GAAP reported sales were 51% higher than the prior-year quarter's $13.0 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 -$0.28. The nine earnings estimates compiled by S&P Capital IQ forecast -$0.20 per share. GAAP EPS were -$0.28 for Q1 versus -$0.27 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 72.1%, 350 basis points better than the prior-year quarter. Operating margin was -59.9%, 2,490 basis points better than the prior-year quarter. Net margin was -59.7%, 2,470 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $27.7 million. On the bottom line, the average EPS estimate is -$0.22.
Next year's average estimate for revenue is $127.4 million. The average EPS estimate is -$0.56.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 911 members out of 943 rating the stock outperform, and 32 members rating it underperform. Among 240 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 230 give MAKO Surgical a green thumbs-up, and 10 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 $42.25.
Over the decades, small-cap stocks like MAKO Surgical have produced market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add MAKO Surgical to My Watchlist.
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.