Why MAKO Surgical Shares Popped
Feb 27th 2013 5:10PM
Updated Feb 27th 2013 5:14PM
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of MAKO Surgical , a robotic surgery device maker specializing in orthopedic implants, jumped as much as 13% after reporting its fourth-quarter earnings results.
So what: For the quarter, MAKO recorded $30.2 million in revenue and announced that it had sold 45 of its RIO orthopedic surgical platforms worldwide in 2012. Revenue fell from the $32.9 million reported in the year-ago period and was short of the $31.4 million Wall Street had expected. MAKO's fourth-quarter loss of $0.13, however, met expectations. Looking forward, MAKO anticipates selling 45 to 48 RIO platforms in 2013 (essentially flat to up 7% from 2012), and performing 13,500 to 14,500 MAKOplasty procedures, which would represent procedure growth of 32% to 42% from 2012.
Now what: With better physician training in place, we're beginning to see procedure growth increase, but the pace at which RIO surgical platforms are selling has to be irritating both investors and the Street. MAKO can somewhat limit research and development costs on its end, but I doubt that'll be enough to bridge the gap to turn it profitable anytime soon. This means that while losses may be shrinking, they should continue, in my estimate, at least through 2013.
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The article Why MAKO Surgical Shares Popped originally appeared on Fool.com.Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong. 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 don't 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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