The Gory Details on Accuray's Double Miss

Seth Jayson, The Motley Fool
Updated

Accuray (NAS: ARAY) reported earnings on Nov. 7. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Sep. 30 (Q1), Accuray missed estimates on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped significantly and GAAP loss per share dropped.


Gross margins expanded, operating margins contracted, net margins dropped.

Revenue details
 Accuray chalked up revenue of $82.7 million. The six analysts polled by S&P Capital IQ foresaw revenue of $85.4 million on the same basis. GAAP reported sales were 18% lower than the prior-year quarter's $100.5 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at -$0.23. The seven earnings estimates compiled by S&P Capital IQ averaged -$0.22 per share. GAAP EPS were -$0.34 for Q1 versus -$0.38 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 28.6%, 430 basis points better than the prior-year quarter. Operating margin was -27.4%, 280 basis points worse than the prior-year quarter. Net margin was -29.2%, 280 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $98.0 million. On the bottom line, the average EPS estimate is -$0.14.

Next year's average estimate for revenue is $413.2 million. The average EPS estimate is -$0.41.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 513 members out of 539 rating the stock outperform, and 26 members rating it underperform. Among 141 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 136 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 $9.67.

The article The Gory Details on Accuray's Double Miss originally appeared on Fool.com.

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. The Motley Fool has no positions in the stocks mentioned above. 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement