Shares of surgical guidance equipment maker Mazor Robotics (MZOR) have been on a tear for the last month.
Since June 13, Mazor stock is up about 18%. That compares with a 0.4% in the S&P 500, a 0.8% gain in the Dow Jones Industrials and about a 1.3% gain in the Nasdaq.
Over the last week, Mazor added another 6.2%, helped by Needham the company was bullish on orders and revenue.
Mazor has orders for 19 surgical robotics systems for the second quarter of 2017, up from six orders in the first quarter, Needham said, according to Briefing.com.
In addition, Mazor is expecting second-quarter revenue of about $15.4 million, which would be a handy beat of the consensus of $12 million.
The company has a backlog of 14 orders so far, which would put it well on its way to its goal of selling 31 systems in 2017.
“(T)he company draws revenue from selling robots/platforms (robots priced at $1.1 million each), disposables the robots consumer during procedures (system kits) and service and support,” Tim Collins, chief analyst of StirlingStrategicInvestor, wrote.
“Revenue from selling robots/systems are recognized when the systems are supplied, not when they are ordered,” Collins said. “For a small, high-growth company, we prefer this conservative approach to revenue recognition.”
What Mazor Does
Mazor Robotics produces surgical guidance systems for spine and brain procedures. Currently, it offers the Renaissance and Mazor X platform/system to medical facilities.
These guidance systems are designed to simplify spinal procedures/surgeries and brain surgery.
The company draws revenue three ways:
— Selling Robots. Currently, robots are priced at $1.1 million each.
— Disposables the robot consumes during procedures.
— Service and support.
Mazor robots have produced six times fewer complications or the need for a repeated procedure. Hospitals are promoting the availability of Mazor Robots as a means of attracting patients, especially when competing facilities lack them.
Are you a thoughtful investor looking for uncommon investment ideas?
Stirling Strategic Investor is a new source of high-quality investment ideas from seasoned investment professionals Tim Collins and Kim Khan, formerly senior members of TheStreet.com. Tim and Kim share 50 insightful equity trade’s per year for $100. That’s just $2 per trade.
Tim and Kim’s first recommendation, Mobileye, was recently acquired at a 34% premium by Intel. We provide the first two ideas at Stirling Strategic Investor for free. We look forward to providing you uncommon ideas of true value.
Learn more at Stirling.
Comments
Mazor (MZOR) Shares on a Tear; Medical Robots in Vogue