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ViewRay (VRAY) to Report Q2 Earnings: What's in the Offing?

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  • VRAY

ViewRay, Inc. VRAY is slated to report second-quarter 2020 results on Jul 30, after the closing bell.

In the last-reported quarter, the company’s loss per share of 19 cents was in line with the Zacks Consensus Estimate. Moreover, its earnings surpassed the consensus estimate in one of the last four quarters, lagged in two and met the mark in one. The trailing four-quarter average negative surprise was 10.23%.

Let's see how things are shaping up prior to the announcement.

Factors at Play

The pandemic-led business disruption is likely to show on ViewRay’s second-quarter results as the company confirmed that it did not receive any installation orders till the day of the first-quarter earnings call in end-April.

ViewRay, Inc. Price and EPS Surprise

 

ViewRay, Inc. Price and EPS Surprise
ViewRay, Inc. Price and EPS Surprise

ViewRay, Inc. price-eps-surprise | ViewRay, Inc. Quote

However, ViewRay’s stereotactic body radiation therapy (SBRT) on MRIdian system is expected to have contributed to the company’s top line due to favorable customer responses because of lowered exposure for both patients and hospital staff. The MRIdian system had a strong first quarter and is expected to maintain performance in the second quarter as well.

The company, during its first-quarter earnings call, confirmed additional benefits of treating prostate cancer patients with SBRT on MRIdian during the pandemic. By leveraging on MR-guided radiation therapy, the number of patient interactions can be reduced unlike traditional therapy. This further minimizes exposure risks for patients and hospital staff, leading to wider customer adoption. This should reflect on ViewRay’s second-quarter revenues.

Q2 Estimates

The Zacks Consensus Estimate for second-quarter 2020 revenues is pegged at $5.8 million, suggesting an 80.8% fall from the year-ago figure.

However, the Zacks Consensus Estimate for the company’s loss per share of 16 cents suggests an improvement of 50% from the year-ago figure.

What Our Model Suggests

Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with an Earnings ESP has good chances of beating estimates. However, this is not the case here as you can see:

Zacks Rank: The company currently carries a Zacks Rank #2.

Earnings ESP: ViewRay has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks Worth a Look

Here are a few medical stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycle.

Integra LifeSciences Holdings Corporation IART has an Earnings ESP of +20.69% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Exact Sciences Corporation EXAS has an Earnings ESP of +6.69% and a Zacks Rank of 2 at present.

Laboratory Corporation of America Holdings LH or LabCorp has an Earnings ESP of +134.19% and is a Zacks #1 Ranked stock.

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Integra LifeSciences Holdings Corporation (IART) : Free Stock Analysis Report
 
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