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Accuray (ARAY) Reports Loss in Q4, Revenues Miss Estimates

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Accuray Incorporated ARAY reported fourth-quarter fiscal 2020 loss per share of a penny against the Zacks Consensus Estimate of earnings per share (EPS) of 2 cents. Also, the company had reported a loss of 2 cents per share a year ago.

For fiscal 2020, the company reported EPS of 3 cents against the Zacks Consensus Estimate of a loss of 9 cents. The company had reported a loss of 19 cents per share a year ago.

Revenue Details

For the fiscal fourth quarter, net revenues totaled $95 million, missing the Zacks Consensus Estimate of $99 million by 4%. On a year-over-year basis, revenues fell 19.1%.

For the fiscal year, net revenues came in at $382.9 million, missing Zacks Consensus Estimate by 1.2%. On a year-over-year basis, revenues fell 8.6%.

Fiscal Q4 Details

Product Revenues: Product revenues fell 33.3% year over year to $40.4 million in the reported quarter.

Service Revenues: Service revenues totaled $54.6 million, down 3.9% from the year-ago quarter.

Gross Order Update: Gross orders in the fiscal fourth quarter totaled $94.3 million, down 2.9% year over year.

Margins

Gross profit in the fiscal fourth quarter totaled $39.9 million, down 13.1% on a year-over-year basis.Gross margin was 42%, highlighting an expansion of 289 basis points (bps) year over year.

Fourth-quarter operating profit was $4.6 million, up 39.8%.Operating margin came in at 4.8%, highlighting an expansion of 202 bps.

Accuray Incorporated Price, Consensus and EPS Surprise

 

Accuray Incorporated Price, Consensus and EPS Surprise
Accuray Incorporated Price, Consensus and EPS Surprise

Accuray Incorporated price-consensus-eps-surprise-chart | Accuray Incorporated Quote

Cash Position

The company exited fourth-quarter fiscal 2020 with total cash, cash equivalents, and short-term restricted cash of $108.6 million, compared with $91.6 million at the end of the fiscal third quarter.

2021 Guidance

Considering the continued progression of the COVID-19 pandemic and the uncertainty of its impact on the global economy and the healthcare industry, Accuray has decided not to issue the financial guidance for 2021 with respect to revenues and adjusted EBITDA.

Our Take

Accuray exited the fiscal fourth quarter on a weak note. The company registered decline in both Product and Service revenues in the quarter. We are also concerned about the gross order decline in the quarter. On the bright side, solid demand for the Radixact, CyberKnife and TomoTherapy platforms continues to drive the top line. Expansion of both margins is encouraging as well. In the quarter, the company shipped nine Synchrony upgrades.

Zacks Rank and Key Picks

Accuray currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the broader medical space are Thermo Fisher Scientific Inc. TMO, PerkinElmer, Inc. PKI and OPKO Health, Inc. OPK. While OPKO Health  carries a Zacks Rank #2 (Buy), the other two sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Thermo Fisher reported second-quarter 2020 adjusted EPS of $3.89, beating the Zacks Consensus Estimate by 45.7%. Revenues of $6.92 billion outpaced the consensus mark by 0.1%.

PerkinElmer reported second-quarter 2020 adjusted EPS of $1.57, surpassing the Zacks Consensus Estimate by 68.8%. Revenues of $811.7 million outpaced the consensus mark by 1.3%.

OPKO Health reported second-quarter 2020 EPS of 5 cents against the Zacks Consensus Estimate of a loss of 7 cents per share. Revenues of $301.2 million surpassed the consensus estimate by 28.4%.

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