The 10-second takeaway
For the quarter ended Sep. 30 (Q3), MAKO Surgical beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP loss per share shrank.
Gross margins dropped, operating margins increased, net margins grew.
MAKO Surgical recorded revenue of $29.2 million. The 11 analysts polled by S&P Capital IQ predicted a top line of $27.5 million on the same basis. GAAP reported sales were 46% higher than the prior-year quarter's $20.0 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 -$0.15. The nine earnings estimates compiled by S&P Capital IQ predicted -$0.16 per share. GAAP EPS were -$0.15 for Q3 against -$0.24 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 59.0%, 680 basis points worse than the prior-year quarter. Operating margin was -32.0%, 1,590 basis points better than the prior-year quarter. Net margin was -22.5%, 2,570 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $36.1 million. On the bottom line, the average EPS estimate is -$0.10.
Next year's average estimate for revenue is $107.0 million. The average EPS estimate is -$0.74.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,170 members out of 1,213 rating the stock outperform, and 43 members rating it underperform. Among 253 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 244 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 $17.86.
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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 recommend 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.