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Accuray (ARAY) Up 2% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Accuray (ARAY - Free Report) . Shares have added about 2% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Accuray due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Accuray Q3 Earnings Lag Estimates, Gross Margin Contracts
Accuray reported a loss per share of 6 cents for the third quarter of fiscal 2024 against the year-ago period’s earnings per share of a penny. The metric was also wider than the Zacks Consensus Estimate of a loss of a penny per share.
Revenues in Detail
Accuray registered revenues of $101.1 million in the third quarter of fiscal 2024, down 14.3% year over year. The figure lagged the Zacks Consensus Estimate by 11.8%.
The overall top-line growth was dampened by lower revenues from both Products and Services.
At constant exchange rate (CER), net revenues were $ 102.4 million, representing a 13% decrease from the prior-year period.
Segmental Details
Accuray derives revenues from two sources — Products and Services.
In the fiscal third quarter, Product revenues declined 21.1% from the year-ago quarter to $49.6 million. This primarily resulted due to shipments of eight fewer units year over year.
Services revenues fell 6.7% from the year-ago quarter to $51.5 million. At CER, Services revenues were down 6%. This resulted from $3 million of lower revenue related to installation, training primarily tied to lower new U.S. installations and lower spare parts volume.
Gross product orders totaled $89.1 million, up 20.8% year over year.
Margin Trend
In the quarter under review, Accuray’s gross profit declined 24.9% to $29.1 million. Gross margin contracted 405 basis points to 28.7%.
Selling and marketing expenses fell 7.3% to $10.3 million. Research and development expenses declined 23.2% year over year to $10.9 million, while general and administrative expenses went up 12.2% year over year to $12.4 million. Total operating expenses of $33.6 million decreased 7.6% year over year.
Operating loss totaled $4.6 million in the fiscal third quarter against the prior-year quarter’s operating profit of $2.3 million.
Financial Position
Accuray exited third-quarter fiscal 2024 with cash and cash equivalents of $60.5 million compared with $72.8 million at the end of the fiscal second quarter.
Total debt (including short-term debt) at the end of third-quarter fiscal 2024 was $173.5 million compared with $174.8 million at the fiscal second-quarter end.
Guidance
Accuray has lowered its revenue outlook for fiscal 2024 based on current expectations.
The company expects its fiscal year revenues to be in the range of $432 million-$437 million, lowered from its previous outlook of $460 million-$470 million (reflecting year-over-year growth of 3-5%). The Zacks Consensus Estimate is pegged at $463.5 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -46.15% due to these changes.
VGM Scores
Currently, Accuray has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Accuray has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Accuray belongs to the Zacks Medical - Instruments industry. Another stock from the same industry, Integer (ITGR - Free Report) , has gained 10.7% over the past month. More than a month has passed since the company reported results for the quarter ended March 2024.
Integer reported revenues of $414.81 million in the last reported quarter, representing a year-over-year change of +9.5%. EPS of $1.14 for the same period compares with $0.87 a year ago.
For the current quarter, Integer is expected to post earnings of $1.24 per share, indicating a change of +8.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +0% over the last 30 days.
Integer has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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Accuray (ARAY) Up 2% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Accuray (ARAY - Free Report) . Shares have added about 2% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Accuray due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Accuray Q3 Earnings Lag Estimates, Gross Margin Contracts
Accuray reported a loss per share of 6 cents for the third quarter of fiscal 2024 against the year-ago period’s earnings per share of a penny. The metric was also wider than the Zacks Consensus Estimate of a loss of a penny per share.
Revenues in Detail
Accuray registered revenues of $101.1 million in the third quarter of fiscal 2024, down 14.3% year over year. The figure lagged the Zacks Consensus Estimate by 11.8%.
The overall top-line growth was dampened by lower revenues from both Products and Services.
At constant exchange rate (CER), net revenues were $ 102.4 million, representing a 13% decrease from the prior-year period.
Segmental Details
Accuray derives revenues from two sources — Products and Services.
In the fiscal third quarter, Product revenues declined 21.1% from the year-ago quarter to $49.6 million. This primarily resulted due to shipments of eight fewer units year over year.
Services revenues fell 6.7% from the year-ago quarter to $51.5 million. At CER, Services revenues were down 6%. This resulted from $3 million of lower revenue related to installation, training primarily tied to lower new U.S. installations and lower spare parts volume.
Gross product orders totaled $89.1 million, up 20.8% year over year.
Margin Trend
In the quarter under review, Accuray’s gross profit declined 24.9% to $29.1 million. Gross margin contracted 405 basis points to 28.7%.
Selling and marketing expenses fell 7.3% to $10.3 million. Research and development expenses declined 23.2% year over year to $10.9 million, while general and administrative expenses went up 12.2% year over year to $12.4 million. Total operating expenses of $33.6 million decreased 7.6% year over year.
Operating loss totaled $4.6 million in the fiscal third quarter against the prior-year quarter’s operating profit of $2.3 million.
Financial Position
Accuray exited third-quarter fiscal 2024 with cash and cash equivalents of $60.5 million compared with $72.8 million at the end of the fiscal second quarter.
Total debt (including short-term debt) at the end of third-quarter fiscal 2024 was $173.5 million compared with $174.8 million at the fiscal second-quarter end.
Guidance
Accuray has lowered its revenue outlook for fiscal 2024 based on current expectations.
The company expects its fiscal year revenues to be in the range of $432 million-$437 million, lowered from its previous outlook of $460 million-$470 million (reflecting year-over-year growth of 3-5%). The Zacks Consensus Estimate is pegged at $463.5 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -46.15% due to these changes.
VGM Scores
Currently, Accuray has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Accuray has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Accuray belongs to the Zacks Medical - Instruments industry. Another stock from the same industry, Integer (ITGR - Free Report) , has gained 10.7% over the past month. More than a month has passed since the company reported results for the quarter ended March 2024.
Integer reported revenues of $414.81 million in the last reported quarter, representing a year-over-year change of +9.5%. EPS of $1.14 for the same period compares with $0.87 a year ago.
For the current quarter, Integer is expected to post earnings of $1.24 per share, indicating a change of +8.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +0% over the last 30 days.
Integer has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.