Mako Surgical Corp. plunged 43 percent after cutting its sales forecast for the RIO robotic arm system for the second time in two months.
Mako dropped $10.60 to close at $14.01 in New York, its biggest one-day decline since the shares began trading in February 2008. The stock has fallen 57 percent this year.
Based on results from the first six months, 42 to 48 of the systems may be sold this year, the Fort Lauderdale, Florida-based company said in a statement yesterday. On May 7, Mako trimmed the forecast to 52 to 58 systems from as much as 62.
“I think it’s an issue of management credibility and of growth,” said Michael Matson, a New York-based analyst with Mizuho Securities USA, in a telephone interview. “The growth is not as strong as people had thought.”
Matson reduced his rating on Mako to neutral after the company missed forecasts for the first quarter. He has a price target of $15 on the stock.
The RIO robotic arm system is a tool that helps surgeons to plan and execute surgical implants. It includes software that maps out surgeries and a tracking system that allows the surgeon to make adjustments during surgeries. The system’s goal is to make technically difficult procedures possible through better visualization.
Mako said yesterday that 15 RIO systems were sold worldwide in this year through the end of June.
“I think demand is just not at the level that people thought,” Matson said.