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Mazor Expects Higher Q1 Revenue, Receives Mazor X Orders
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Israel-based developer of robotic technology and products, Mazor Robotics Ltd. , recently announced that it expects to report record first-quarter 2017 revenue of approximately $11.5 million compared with only $6.4 million in the year-ago quarter. The bullishness comes from the strength in Mazor X system sales and increased procedure volume.
Stock Performance
Lately, the price performance of Mazor X has been encouraging. In the last three months, the stock increased 20.64%, outperforming the Zacks classified Medical Instruments sub-industry’s gain of roughly 4.87%. Moreover, the stock’s current return was higher than the S&P 500’s return of 3.66% over the same time frame.
Despite the bullish price trend, estimates revision for the stock has been quite disappointing. The full year saw two estimates moving south in the last two months, compared with no movement in the opposite direction. As a result, the estimate dropped to a loss of 91 cents per share from a loss of only 67 cents per share over the aforementioned period. These bearish sentiments justify the stock’s Zacks Rank #4 (Sell).
Behind the Strength in Mazor X
During the first quarter, Mazor Robotics received purchase orders for six Mazor X systems in the U.S. The company also received a purchase order for a Renaissance brain module upgrade in the international market. In the year-ago quarter, the company received purchase orders for five Renaissance systems.
Mazor X is a transformative guidance system for simplifying spine surgeries with advanced features and ‘sophisticated integrative abilities’. Strong demand for Mazor X systems during the first quarter brought the total number of its orders to 40 since its introduction in the second half of 2016. The company ended the first quarter with an order backlog of 14 Mazor X systems and expects to deliver these systems in 2017. The company is slated to report its financial results for the first quarter ended Mar 31, 2017 in May.
Bottom Line
We are also hopeful about the encouraging global spine surgery market. A research report by Markets And Markets suggests that the niche markets are estimated to reach $17.27 billion by 2021, multiplying at a CAGR of 5.3%.
In fact, the increasing utilization rate of Mazor X is quite compelling for the company. We believe that the commercialization cycle of the Mazor X platform is progressing as planned with a growing customer base.
Meanwhile, the Medtronic agreement paves the way to develop synergistic products utilizing Mzaor Robotics’ precision guided surgery know-how, advanced software capabilities and Medtronic’s implant product portfolio.
Key Picks
Better-ranked stocks in the broader medical sector are Inogen Inc. (INGN - Free Report) , IDEXX Laboratories, Inc. (IDXX - Free Report) and Fluidigm Corporation . Notably, Inogen and IDEXX Laboratories sport a Zacks Rank #1 (Strong Buy) while Fluidigm carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Inogen has a long-term expected earnings growth rate of 17.50%. Notably, the stock registered an impressive one-year return of 70.6%.
IDEXX Laboratories has a long-term expected earnings growth rate of 15.04%. Additionally, the stock returned an impressive 97.5% in the last one year.
Fluidigm has a long-term expected earnings growth rate of 25%. The stock delivered a positive earnings surprise of 1.6% last quarter.
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Mazor Expects Higher Q1 Revenue, Receives Mazor X Orders
Israel-based developer of robotic technology and products, Mazor Robotics Ltd. , recently announced that it expects to report record first-quarter 2017 revenue of approximately $11.5 million compared with only $6.4 million in the year-ago quarter. The bullishness comes from the strength in Mazor X system sales and increased procedure volume.
Stock Performance
Lately, the price performance of Mazor X has been encouraging. In the last three months, the stock increased 20.64%, outperforming the Zacks classified Medical Instruments sub-industry’s gain of roughly 4.87%. Moreover, the stock’s current return was higher than the S&P 500’s return of 3.66% over the same time frame.
Despite the bullish price trend, estimates revision for the stock has been quite disappointing. The full year saw two estimates moving south in the last two months, compared with no movement in the opposite direction. As a result, the estimate dropped to a loss of 91 cents per share from a loss of only 67 cents per share over the aforementioned period. These bearish sentiments justify the stock’s Zacks Rank #4 (Sell).
Behind the Strength in Mazor X
During the first quarter, Mazor Robotics received purchase orders for six Mazor X systems in the U.S. The company also received a purchase order for a Renaissance brain module upgrade in the international market. In the year-ago quarter, the company received purchase orders for five Renaissance systems.
Mazor X is a transformative guidance system for simplifying spine surgeries with advanced features and ‘sophisticated integrative abilities’. Strong demand for Mazor X systems during the first quarter brought the total number of its orders to 40 since its introduction in the second half of 2016. The company ended the first quarter with an order backlog of 14 Mazor X systems and expects to deliver these systems in 2017. The company is slated to report its financial results for the first quarter ended Mar 31, 2017 in May.
Bottom Line
We are also hopeful about the encouraging global spine surgery market. A research report by Markets And Markets suggests that the niche markets are estimated to reach $17.27 billion by 2021, multiplying at a CAGR of 5.3%.
In fact, the increasing utilization rate of Mazor X is quite compelling for the company. We believe that the commercialization cycle of the Mazor X platform is progressing as planned with a growing customer base.
Meanwhile, the Medtronic agreement paves the way to develop synergistic products utilizing Mzaor Robotics’ precision guided surgery know-how, advanced software capabilities and Medtronic’s implant product portfolio.
Key Picks
Better-ranked stocks in the broader medical sector are Inogen Inc. (INGN - Free Report) , IDEXX Laboratories, Inc. (IDXX - Free Report) and Fluidigm Corporation . Notably, Inogen and IDEXX Laboratories sport a Zacks Rank #1 (Strong Buy) while Fluidigm carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Inogen has a long-term expected earnings growth rate of 17.50%. Notably, the stock registered an impressive one-year return of 70.6%.
IDEXX Laboratories has a long-term expected earnings growth rate of 15.04%. Additionally, the stock returned an impressive 97.5% in the last one year.
Fluidigm has a long-term expected earnings growth rate of 25%. The stock delivered a positive earnings surprise of 1.6% last quarter.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>