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 grew significantly and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Accuray chalked up revenue of $106.4 million. The two analysts polled by S&P Capital IQ hoped for sales of $101.6 million on the same basis. GAAP reported sales were 96% higher than the prior-year quarter's $54.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at -$0.16. The two earnings estimates compiled by S&P Capital IQ predicted -$0.19 per share on the same basis. GAAP EPS were -$0.15 for Q2 versus $0.07 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 37.8%, 1,650 basis points worse than the prior-year quarter. Operating margin was -6.9%, 1,370 basis points worse than the prior-year quarter. Net margin was -9.8%, 1,740 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $103.0 million. On the bottom line, the average EPS estimate is -$0.09.
Next year's average estimate for revenue is $412.6 million. The average EPS estimate is -$0.47.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 527 members out of 552 rating the stock outperform, and 26 members rating it underperform. Among 166 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 162 give Accuray a green thumbs-up, and four 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 $7.00.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.