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MAKO Surgical Misses Where it Counts

By Seth Jayson – Updated Apr 10, 2017 at 1:23PM

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Just the facts, Fool.

MAKO Surgical (Nasdaq: MAKO) reported earnings on May 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), MAKO Surgical beat slightly on revenues and missed expectations on earnings per share.

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

Margins increased across the board.

Revenue details
MAKO Surgical booked revenue of $24.8 million. The nine analysts polled by S&P Capital IQ predicted a top line of $24.4 million on the same basis. GAAP reported sales were 26% higher than the prior-year quarter's $19.6 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 -$0.21. The 10 earnings estimates compiled by S&P Capital IQ predicted -$0.19 per share. GAAP EPS were -$0.21 for Q1 against -$0.28 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 73.6%, 150 basis points better than the prior-year quarter. Operating margin was -36.0%, much better than the prior-year quarter. Net margin was -38.8%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $28.7 million. On the bottom line, the average EPS estimate is -$0.27.

Next year's average estimate for revenue is $126.0 million. The average EPS estimate is -$0.65.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,201 members out of 1,246 rating the stock outperform, and 45 members rating it underperform. Among 266 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 255 give MAKO Surgical a green thumbs-up, and 11 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 $14.57.

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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.

Stocks Mentioned

MAKO Surgical Corp. Stock Quote
MAKO Surgical Corp.

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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