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Accuray Incorporated (ARAY - Free Report) reported first-quarter fiscal 2025 loss per share of 4 cents compared with the year-ago period’s reported loss of 3 cents. The bottom line was in line with the Zacks Consensus Estimate.
Revenues in Detail
Accuray registered quarterly revenues of $101.5 million, down 2.3% year over year. However, the figure beat the Zacks Consensus Estimate by 3.5%. At constant exchange rate (CER), net revenues were $102 million.
The overall top-line growth was hurt by lower product sales, partially offset by higher service revenues.
Segmental Details
Accuray derives revenues from two sources — Products and Services.
In the fiscal first quarter, Product revenues declined 9.4% from the year-ago quarter’s level to $48.4 million.
Services revenues improved 5.3% to $53.2 million.
Gross product orders totaled $55.4 million, down 13% year over year.
In the quarter under review, Accuray’s gross profit declined 12.7% year over year to $34.5 million. Gross margin contracted 410 basis points to 33.9%.
Selling and marketing expenses increased 14% to $11.7 million. Research and development expenses decreased 13.5% to $12.1 million. General and administrative expenses also went down 1.6% year over year to $12.8 million. Total operating expenses of $36.6 million decreased 1.8%.
Operating loss totaled $2.1 million against the prior-year quarter’s operating profit of $2.2 million.
Financial Position
Accuray exited the first quarter of fiscal 2025 with cash and cash equivalents of $59.7 million compared with $69.1 million at the end of the fourth quarter of fiscal 2024.
Total debt (including short-term debt) at the end of the fiscal first quarter was $170.2 million compared with $172.2 million at the end of the fourth quarter of fiscal 2024.
Guidance
Accuray has raised its revenue outlook for fiscal 2025 based on current expectations.
The company now expects revenues to be in the range of $462-$472 million (reflecting year-over-year growth of 3.5-5.7%) compared with the previous guidance of $460-$470 million. The Zacks Consensus Estimate is pegged at $465.2 million.
Our Take
Accuray’s first-quarter fiscal 2025 earnings met estimates but revenues beat the same. The company’s improving product sales were encouraging. ARAY achieved record quarterly system shipments with a 24% increase in systems shipped compared with the year-ago period’s level.
During the fourth quarter of fiscal 2024, the company received Precision Treatment Planning System (“TPS”) in China for use with the Tomo C radiation therapy system. It also gained approval for Helix, a configuration of the Radixact Treatment Delivery System in Europe. These approvals are aided revenue growth in the reported quarter. Expansion into new markets looks promising.
However, contracting margins do not bode well for the company.
ANGO’s earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 31.71%.
AngioDynamics’ shares have lost 5.5% year to date against the industry’s 6.3% growth.
Masimo, sporting a Zacks Rank of 1 at present, has an estimated growth rate of 10.4% for 2025. MASI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 17.10%.
Masimo’s shares have risen 43% year to date compared with the industry’s 6.3% growth.
Globus Medical, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 12.7%. GMED’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.1%. Its shares have risen 55.2% year to date compared with the industry’s 6.3% growth.
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Accuray Q1 Earnings Meet Estimates, Sales Beat, Gross Margin Shrinks
Accuray Incorporated (ARAY - Free Report) reported first-quarter fiscal 2025 loss per share of 4 cents compared with the year-ago period’s reported loss of 3 cents. The bottom line was in line with the Zacks Consensus Estimate.
Revenues in Detail
Accuray registered quarterly revenues of $101.5 million, down 2.3% year over year. However, the figure beat the Zacks Consensus Estimate by 3.5%. At constant exchange rate (CER), net revenues were $102 million.
The overall top-line growth was hurt by lower product sales, partially offset by higher service revenues.
Segmental Details
Accuray derives revenues from two sources — Products and Services.
In the fiscal first quarter, Product revenues declined 9.4% from the year-ago quarter’s level to $48.4 million.
Services revenues improved 5.3% to $53.2 million.
Gross product orders totaled $55.4 million, down 13% year over year.
Accuray Incorporated Price and EPS Surprise
Accuray Incorporated price-eps-surprise | Accuray Incorporated Quote
Margin Trend
In the quarter under review, Accuray’s gross profit declined 12.7% year over year to $34.5 million. Gross margin contracted 410 basis points to 33.9%.
Selling and marketing expenses increased 14% to $11.7 million. Research and development expenses decreased 13.5% to $12.1 million. General and administrative expenses also went down 1.6% year over year to $12.8 million. Total operating expenses of $36.6 million decreased 1.8%.
Operating loss totaled $2.1 million against the prior-year quarter’s operating profit of $2.2 million.
Financial Position
Accuray exited the first quarter of fiscal 2025 with cash and cash equivalents of $59.7 million compared with $69.1 million at the end of the fourth quarter of fiscal 2024.
Total debt (including short-term debt) at the end of the fiscal first quarter was $170.2 million compared with $172.2 million at the end of the fourth quarter of fiscal 2024.
Guidance
Accuray has raised its revenue outlook for fiscal 2025 based on current expectations.
The company now expects revenues to be in the range of $462-$472 million (reflecting year-over-year growth of 3.5-5.7%) compared with the previous guidance of $460-$470 million. The Zacks Consensus Estimate is pegged at $465.2 million.
Our Take
Accuray’s first-quarter fiscal 2025 earnings met estimates but revenues beat the same. The company’s improving product sales were encouraging. ARAY achieved record quarterly system shipments with a 24% increase in systems shipped compared with the year-ago period’s level.
During the fourth quarter of fiscal 2024, the company received Precision Treatment Planning System (“TPS”) in China for use with the Tomo C radiation therapy system. It also gained approval for Helix, a configuration of the Radixact Treatment Delivery System in Europe. These approvals are aided revenue growth in the reported quarter. Expansion into new markets looks promising.
However, contracting margins do not bode well for the company.
Zacks Rank and Key Picks
Accuray currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the medical industry are AngioDynamics (ANGO - Free Report) , Masimo (MASI - Free Report) and Globus Medical (GMED - Free Report) .
AngioDynamics, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated growth rate of 38.2% for 2025. You can see the complete list of today’s Zacks #1 Rank stocks here.
ANGO’s earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 31.71%.
AngioDynamics’ shares have lost 5.5% year to date against the industry’s 6.3% growth.
Masimo, sporting a Zacks Rank of 1 at present, has an estimated growth rate of 10.4% for 2025. MASI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 17.10%.
Masimo’s shares have risen 43% year to date compared with the industry’s 6.3% growth.
Globus Medical, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 12.7%. GMED’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.1%. Its shares have risen 55.2% year to date compared with the industry’s 6.3% growth.