Why MAKO Surgical Corp. (MAKO) Earnings Won’t Rebound Soon

The biggest potential growth driver for MAKO’s RIO system is to expand its use into other types of procedures. Possible areas would be shoulder repairs, and total knee replacements, both of which could help boost use of the RIO toward levels that Intuitive Surgical, Inc. (NASDAQ:ISRG)’s da Vinci systems have been able to achieve.

Still, MAKO faces some big challenges. Despite an improving economy, health-care facilities are still reluctant to boost capital spending, and that could continue to pressure RIO system sales. Moreover, taxes on medical-device sales from Obamacare sap a percentage of MAKO’s total revenue, despite the fact that the company isn’t profitable.

In the MAKO earnings report, watch to see whether the company’s sales continue to track with Intuitive’s results. If they diverge, then it could spell relief for investors, who’ve grown tired of the guilt-by-association that has pulled the two companies’ stocks down in tandem. Regardless, though, MAKO has a long way to climb before it’s likely to post a profit.

The article Why MAKO Earnings Won’t Rebound Soon originally appeared on Fool.com is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Intuitive Surgical and MAKO Surgical. The Motley Fool owns shares of Intuitive Surgical.

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