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.
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