Accuray Increases Sales but Misses Revenue Estimate
Accuray (NAS: ARAY) reported earnings on May 8. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q3), Accuray missed slightly on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP loss per share expanded.
Margins dropped across the board.
Accuray tallied revenue of $101.8 million. The six analysts polled by S&P Capital IQ hoped for sales of $103.9 million on the same basis. GAAP reported sales were 86% higher than the prior-year quarter's $54.7 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 -$0.13. The two earnings estimates compiled by S&P Capital IQ anticipated -$0.14 per share. GAAP EPS were -$0.21 for Q3 against -$0.02 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 35.5%, 1,440 basis points worse than the prior-year quarter. Operating margin was -14.1%, 1,750 basis points worse than the prior-year quarter. Net margin was -14.6%, 1,250 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $109.6 million. On the bottom line, the average EPS estimate is -$0.11.
Next year's average estimate for revenue is $414.8 million. The average EPS estimate is -$0.52.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 523 members out of 549 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 $8.33.
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At the time this article was published 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 ofMotley 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.