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A month has gone by since the last earnings report for Accuray (ARAY). Shares have lost about 15.2% 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 Q4 Earnings and Revenues Lag Estimates
Accuray reported loss per share of 3 cents for the fourth quarter of fiscal 2023, narrower than the year-ago period’s loss of 4 cents per share. However, the metric lags the Zacks Consensus Estimate of a breakeven earnings per share.
Full-year adjusted loss per share was 10 cents, wider than the loss of 6 cents per share at the end of the comparable fiscal 2022 period. The loss per share was also wider than the Zacks Consensus Estimate of a loss of 7 cents per share.
Revenues in Detail
Accuray registered revenues of $118.3 million in the fourth quarter of fiscal 2023, up 7.5% year over year. However, the figure lagged the Zacks Consensus Estimate by 2.6%.
The overall top-line growth was aided by robust segmental revenues and performances by the majority of geographies.
At constant exchange rate (CER), net revenues were $120.1 million, representing a 9.1% increase from the prior-year period.
Full-year revenues were $447.6 million, reflecting a 4.1% improvement from the comparable fiscal 2022 period. However, the figure lagged the Zacks Consensus Estimate by 0.7%.
Segmental Details
Accuray derives revenues from two sources — Products and Services.
In the fiscal fourth quarter, Product revenues improved 7.6% from the year-ago quarter to $62.5 million. At CER, Product revenues improved 9%.
Services revenues rose 7.4% from the year-ago quarter to $55.8 million. At CER, Services revenues were up 9%.
Gross product orders totaled $88.4 million, up 0.1% year over year.
Margin Trend
In the quarter under review, Accuray’s gross profit fell 12.4% to $37.7 million. Gross margin contracted 725 basis points to 31.9%.
Selling and marketing expenses fell 25.7% to $10.7 million. Research and development expenses fell 2.6% year over year to $14.2 million, while general and administrative expenses went up 10.3% year over year to $13.3 million. Total operating expenses of $38.1 million decreased 6.9% year over year.
Operating loss totaled $0.5 million in the fiscal fourth quarter against the prior-year quarter’s operating profit of $2 million.