The 10-second takeaway
For the quarter ended March 31 (Q3), Accuray missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly. Non-GAAP loss per share grew. GAAP loss per share grew.
Margins contracted across the board.
Accuray chalked up revenue of $70.5 million. The six analysts polled by S&P Capital IQ expected a top line of $76.8 million on the same basis. GAAP reported sales were 31% lower than the prior-year quarter's $101.8 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 -$0.37. The seven earnings estimates compiled by S&P Capital IQ averaged -$0.22 per share. Non-GAAP EPS were -$0.37 for Q3 compared to -$0.13 per share for the prior-year quarter. GAAP EPS were -$0.42 for Q3 versus -$0.21 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 28.4%, 710 basis points worse than the prior-year quarter. Operating margin was -35.5%, much worse than the prior-year quarter. Net margin was -44.2%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $88.9 million. On the bottom line, the average EPS estimate is -$0.26.
Next year's average estimate for revenue is $324.4 million. The average EPS estimate is -$0.91.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 509 members out of 536 rating the stock outperform, and 27 members rating it underperform. Among 127 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 122 give Accuray a green thumbs-up, and five 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 $7.33.
Is Accuray the best health care stock for you? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average health care logistics company. Click here for instant access to this free report.
- Add Accuray to My Watchlist.
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. The Motley Fool has no position in any of the stocks mentioned. 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.