On Jul 10, we retained
) at Neutral, following its dismal fiscal third-quarter results.
Both revenues and earnings missed estimates, compelling the
company to lower its fiscal 2013 revenue guidance. However, we
are encouraged that the radiosurgery systems maker was successful
in enhancing product order momentum.
Why the Retention?
Accuray's third-quarter fiscal 2013 adjusted loss was 37 cents
per share, wider than the Zacks Consensus Estimate of a loss of
21 cents. Adjusted revenues for the quarter were $70.6 million
(down 30.5% year over year). Results failed to meet the Zacks
Consensus Estimate of $78 million.
The company's earnings have failed to beat the Zacks Consensus
Estimates in 3 out of the last 4 quarters with an average
negative surprise of 29.49%. Moreover, we expect annualized loss
to widen by 29.14% to $1.05 per share in the current fiscal.
However, we are encouraged to note that, the next fiscal may
witness growth of 67.69% reaching a loss of 34 cents a share.
Internal manufacturing and supply-related issues led to the delay
in the launch of its latest technologies and widening of losses.
As a result, the company trimmed its fiscal 2013 revenue
Nonetheless, we appreciate Accuray's success in improving product
order momentum in the last reported quarter, reflecting healthy
adoption of new products. Moreover, the company's restructuring
efforts and healthy service gross margin are also helping it to
stabilize. We are upbeat about the compelling prospects in
radiation oncology rendered by TomoTherapy. The company now has a
Zacks Rank #3 (Hold).
Other Stocks to Consider
Medical instrument companies such as
) warrant a look. All these stocks carry a Zacks Rank #2
ACCURAY INC (ARAY): Free Stock Analysis
CEPHEID INC (CPHD): Free Stock Analysis
GLOBUS MEDICAL (GMED): Free Stock Analysis
MAKO SURGICAL (MAKO): Free Stock Analysis
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