Why MAKO Surgical Crashed
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What: Shares of MAKO Surgical (NAS: MAKO) crashed by as much as 41% today after the company reported preliminary sales figures for its second quarter.
So what: RIO system sales came in at just nine systems, following up its disappointing first quarter, which saw only six systems sold. There were a total of 2,590 MAKOplasty procedures performed during the quarter, which was a 66% increase over last year. The company also sold nine total hip arthroplasty applications.
Now what: MAKO has had a rough year so far, even when acknowledging the back-end-loaded nature of its business with most purchases usually taking place during the latter half of each year. CEO Maurice Ferre expressed optimism in long-term growth, but said the company's near-term focus will be improving execution. For the second consecutive quarter, MAKO has now slashed full-year RIO system sales guidance and now expects to sell only 42 to 48 systems this year.
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At the time this article was published Fool contributor Evan Niu owns shares of MAKO Surgical, but he holds no other position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool owns shares of MAKO Surgical. Motley Fool newsletter services have recommended buying shares of MAKO Surgical. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.