Accuray(US:ARAY) ZACKSยท2025-05-01 16:35Core Viewpoint - Accuray Incorporated reported a narrower loss per share in Q3 fiscal 2025, exceeding consensus estimates, driven by strong revenue growth and demand for its products, despite facing challenges from tariffs impacting margins and sales in China [1][10][11]. Revenue Performance - Accuray's Q3 fiscal 2025 revenues reached $113.2 million, reflecting an 11.9% year-over-year increase and surpassing the Zacks Consensus Estimate by 10.9% [2]. - Product revenues grew by 15.6% year-over-year to $57.3 million, while service revenues increased by 8.5% to $55.9 million [6]. Stock Performance - Accuray's shares declined by 4.3% to close at $1.55, with a year-to-date loss of 21.7%, compared to a 9.1% decline in the industry and a 5.9% loss in the S&P 500 Index [3]. Segment Analysis - The company reported gross product orders of $71.2 million, down 20.1% year-over-year, with a book-to-bill ratio of 1.2, indicating a decrease from 1.8 in the previous year [6][12]. Margin and Profitability - Gross profit improved by 8.8% year-over-year to $31.6 million, but gross margin contracted by 80 basis points to 27.9% due to tariff impacts [7][13]. - Operating profit was $1 million, a significant improvement from an operating loss of $4.6 million in the prior year [8]. Financial Position - At the end of Q3 fiscal 2025, Accuray had cash and cash equivalents of $77.8 million, up from $62.6 million at the end of the previous quarter, while total debt decreased slightly to $173.8 million [9]. Guidance and Outlook - The company adjusted its revenue guidance for fiscal 2025 to a range of $452-$460 million, down from the previous estimate of $463-$475 million, reflecting the impact of tariffs on product volume [10][13]. - Despite challenges, Accuray's growth was supported by strong demand in both developed and emerging markets, with a notable increase in unit volume and service revenue [11].