The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Accuray beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP loss per share expanded.
Margins contracted across the board.
Accuray recorded revenue of $77.8 million. The six analysts polled by S&P Capital IQ wanted to see a top line of $74.2 million on the same basis. GAAP reported sales were 27% lower than the prior-year quarter's $106.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.30. The six earnings estimates compiled by S&P Capital IQ forecast -$0.33 per share. GAAP EPS were -$0.40 for Q2 versus -$0.15 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 34.2%, 360 basis points worse than the prior-year quarter. Operating margin was -28.6%, 2,170 basis points worse than the prior-year quarter. Net margin was -37.5%, 2,770 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $75.6 million. On the bottom line, the average EPS estimate is -$0.23.
Next year's average estimate for revenue is $324.2 million. The average EPS estimate is -$0.94.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 510 members out of 536 rating the stock outperform, and 26 members rating it underperform. Among 145 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 139 give Accuray a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Accuray is outperform, with an average price target of $9.07.
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