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Can MAKO Surgical Beat These Numbers?

By Seth Jayson – Updated Apr 10, 2017 at 1:27PM

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Checking expectations

MAKO Surgical (Nasdaq: MAKO) is expected to report Q1 earnings on May 7. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict MAKO Surgical's revenues will increase 24.5% and EPS will remain in the red.

The average estimate for revenue is $24.4 million. On the bottom line, the average EPS estimate is -$0.19.

Revenue details
Last quarter, MAKO Surgical booked revenue of $30.2 million. 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
Last quarter, EPS came in at -$0.13. 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.

Recent performance
For the preceding 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

The full year's average estimate for revenue is $125.9 million. The average EPS estimate is -$0.51.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,202 members out of 1,247 rating the stock outperform, and 45 members rating it underperform. Among 272 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 260 give MAKO Surgical a green thumbs-up, and 12 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.

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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 recommends MAKO Surgical. 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.

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