We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Accuray (ARAY) Down 15.3% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
A month has gone by since the last earnings report for Accuray (ARAY - Free Report) . Shares have lost about 15.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Accuray due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Accuray Q1 Earnings Beat Estimates, Margins Down
Accuray reported adjusted loss per share of a penny for the first quarter of fiscal 2022 against year-over-year break even earnings per share. Adjusted loss per share was narrower than the Zacks Consensus Estimate of a loss of 3 cents.
GAAP loss per share was 10 cents against the prior-year quarter’s break-even earnings per share.
Revenues in Detail
Accuray registered revenues of $107.4 million in the fiscal 2022 first quarter, up 25.9% year over year. The figure surpassed the Zacks Consensus Estimate by 16.7%.
Strength in Product revenues and robust year-over-year growth in Americas and China drove the overall top line in the quarter.
Segmental Details
Accuray derives revenues from two sources — Product and Services.
In the fiscal first quarter, Product revenues improved 68.8% from the year-ago quarter to $52.8 million. CyberKnife accounted for around 47% of revenue unit volume in the quarter whereas the TomoTherapy platform accounted for the remaining 53%.
Services revenues improved 1.1% from the year-ago quarter to $54.7 million.
Gross orders totaled $69.9 million, up 38.5% year over year.
Margin Trend
In the quarter under review, Accuray’s gross profit rose 11.6% to $39.5 million. Gross margin contracted 470 basis points (bps) to 36.8%.
Selling and marketing expenses rose 26.7% to $11.3 million. Research and development expenses went up 18.4% year over year to $14.4 million while general and administrative expenses went up 28.9% year over year to $11.5 million. Total operating expenses of $37.1 million increased 23.9% year over year.
Total operating profit totaled $2.4 million, reflecting a 55.9% decline from the prior-year quarter. Operating margin in the quarter contracted 416 bps to 2.2%.
Financial Position
Accuray exited first quarter of fiscal 2022 with cash and cash equivalents of $104.7 million compared with $116.4 million at the end of fiscal 2021. Total debt (including short-term debt) at the end of fiscal 2022 first quarter was $197.8 million compared with $173.8 million at the end of fiscal 2021.
2022 Guidance
Despite pandemic-led uncertainties, Accuray expects its total revenues for the year in the range of $420 million-$427 million, representing growth of 7% at the midpoint of the range from the comparable figure in fiscal 2021. This is in line with its revenue outlook that Accuray provided when it announced its preliminary first quarter fiscal 2022 financial results.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Accuray (ARAY) Down 15.3% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Accuray (ARAY - Free Report) . Shares have lost about 15.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Accuray due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Accuray Q1 Earnings Beat Estimates, Margins Down
Accuray reported adjusted loss per share of a penny for the first quarter of fiscal 2022 against year-over-year break even earnings per share. Adjusted loss per share was narrower than the Zacks Consensus Estimate of a loss of 3 cents.
GAAP loss per share was 10 cents against the prior-year quarter’s break-even earnings per share.
Revenues in Detail
Accuray registered revenues of $107.4 million in the fiscal 2022 first quarter, up 25.9% year over year. The figure surpassed the Zacks Consensus Estimate by 16.7%.
Strength in Product revenues and robust year-over-year growth in Americas and China drove the overall top line in the quarter.
Segmental Details
Accuray derives revenues from two sources — Product and Services.
In the fiscal first quarter, Product revenues improved 68.8% from the year-ago quarter to $52.8 million. CyberKnife accounted for around 47% of revenue unit volume in the quarter whereas the TomoTherapy platform accounted for the remaining 53%.
Services revenues improved 1.1% from the year-ago quarter to $54.7 million.
Gross orders totaled $69.9 million, up 38.5% year over year.
Margin Trend
In the quarter under review, Accuray’s gross profit rose 11.6% to $39.5 million. Gross margin contracted 470 basis points (bps) to 36.8%.
Selling and marketing expenses rose 26.7% to $11.3 million. Research and development expenses went up 18.4% year over year to $14.4 million while general and administrative expenses went up 28.9% year over year to $11.5 million. Total operating expenses of $37.1 million increased 23.9% year over year.
Total operating profit totaled $2.4 million, reflecting a 55.9% decline from the prior-year quarter. Operating margin in the quarter contracted 416 bps to 2.2%.
Financial Position
Accuray exited first quarter of fiscal 2022 with cash and cash equivalents of $104.7 million compared with $116.4 million at the end of fiscal 2021. Total debt (including short-term debt) at the end of fiscal 2022 first quarter was $197.8 million compared with $173.8 million at the end of fiscal 2021.
2022 Guidance
Despite pandemic-led uncertainties, Accuray expects its total revenues for the year in the range of $420 million-$427 million, representing growth of 7% at the midpoint of the range from the comparable figure in fiscal 2021. This is in line with its revenue outlook that Accuray provided when it announced its preliminary first quarter fiscal 2022 financial results.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.