Accuray (NASDAQ:ARAY) Releases Earnings Results, Misses Expectations By $0.04 EPS

Accuray (NASDAQ:ARAY) posted its earnings results on Wednesday, May 6th. The medical equipment provider reported ($0.09) EPS for the quarter, missing the consensus estimate of ($0.05) by ($0.04), FiscalAI reports. Accuray had a negative net margin of 10.76% and a negative return on equity of 79.43%. The business had revenue of $104.85 million during the quarter, compared to analysts’ expectations of $111.90 million.

Here are the key takeaways from Accuray’s conference call:

• Withdrew financial guidance due to indefinite shipment delays in the Middle East/North Africa/Pakistan and persistent China/tariff headwinds, making near-term revenue and installations unpredictable.
• Q3 net revenue was $104.8 million (down 7% YoY, up 3% sequentially); product revenue drove most of the decline, while book-to-bill was 1.0 and reported backlog was roughly $356 million.
• The Transformation Plan is progressing—~15% workforce reduction and other cost actions target $25 million of annualized operating improvements, with about $10 million realized to date and management on track to exceed the $12 million FY2026 target.
• Gross margin compressed to 24.1% from 27.9% YoY, primarily driven by a sharp drop in service margins due to higher parts consumption, logistics/duties and tariff impacts that reduced profitability.
• Management is strengthening differentiation via strategic partnerships and clinical evidence efforts—leveraging its large motion-tracked treatment dataset and a multi-center registry, and adding Paul Miele as Chief Commercial Officer to accelerate commercial execution and service monetization.

Accuray Stock Performance

Shares of NASDAQ ARAY traded down $0.01 during trading hours on Thursday, reaching $0.36. The stock had a trading volume of 1,359,704 shares, compared to its average volume of 2,313,068. The firm has a 50-day moving average of $0.39 and a 200-day moving average of $0.63. The firm has a market cap of $43.18 million, a price-to-earnings ratio of -0.98 and a beta of 1.35. The company has a current ratio of 1.42, a quick ratio of 0.66 and a debt-to-equity ratio of 3.21. Accuray has a fifty-two week low of $0.25 and a fifty-two week high of $2.10.

Institutional Investors Weigh In On Accuray

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. TCW Group Inc. grew its position in shares of Accuray by 29.9% during the fourth quarter. TCW Group Inc. now owns 15,467,952 shares of the medical equipment provider’s stock worth $12,684,000 after acquiring an additional 3,558,595 shares during the last quarter. TENOR CAPITAL MANAGEMENT Co. L.P. purchased a new stake in Accuray in the 2nd quarter valued at $2,055,000. Armistice Capital LLC raised its position in Accuray by 35.4% in the 4th quarter. Armistice Capital LLC now owns 4,500,000 shares of the medical equipment provider’s stock valued at $3,711,000 after purchasing an additional 1,176,000 shares during the last quarter. Mackenzie Financial Corp boosted its stake in Accuray by 76.5% during the 4th quarter. Mackenzie Financial Corp now owns 1,918,086 shares of the medical equipment provider’s stock worth $1,538,000 after purchasing an additional 831,220 shares during the period. Finally, Citadel Advisors LLC grew its position in Accuray by 9,301.4% during the 3rd quarter. Citadel Advisors LLC now owns 662,499 shares of the medical equipment provider’s stock worth $1,106,000 after purchasing an additional 669,699 shares during the last quarter. Hedge funds and other institutional investors own 64.08% of the company’s stock.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on ARAY shares. Wall Street Zen cut Accuray from a “hold” rating to a “sell” rating in a research report on Saturday, February 7th. Weiss Ratings raised Accuray from a “sell (e+)” rating to a “sell (d-)” rating in a report on Thursday, May 7th. BTIG Research lowered shares of Accuray from a “buy” rating to a “neutral” rating in a research note on Thursday, May 7th. Finally, Jefferies Financial Group cut shares of Accuray from a “buy” rating to a “hold” rating in a report on Tuesday, May 12th. Two equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Reduce” and a consensus price target of $2.00.

About Accuray

Accuray Incorporated (NASDAQ: ARAY) is a global medical device company that develops, manufactures and markets innovative radiation therapy solutions for the treatment of cancer. The company’s flagship products include the CyberKnife® System, a robotic radiosurgery platform offering sub-millimeter precision, and the TomoTherapy® System, which combines helical computed tomography (CT) imaging with intensity-modulated radiation therapy (IMRT). More recently, Accuray introduced the Radixact® System, an advanced iteration of its TomoTherapy technology designed to enhance treatment speed and clinical workflow.

Accuray’s suite of products enables clinicians to deliver highly targeted radiation doses while minimizing exposure to surrounding healthy tissue.