Accuray Remains A Perpetual 'Next Year Is Our Year' Story

Summary

• Accuray posts a strong end to the fiscal year with 16% revenue growth in FQ4, beating expectations and restoring some confidence for the upcoming year.
• Management's claim that weaker U.S. sales are a consequence of a weaker capex environment don't fully align with the reported U.S. sales results of other med-tech capital equipment companies.
• Global opportunities remain promising, especially in China's value-priced linac market, and opportunities in Japan, India, other emerging markets are meaningful.
• Execution remains critical as the company faces tough competition and needs to capitalize on growth opportunities in China and replacement/renewal opportunities in the U.S. market.
• Accuray shares offer potential upside, at the cost of elevated risk, if the company can overcome sales execution challenges and capitalize on emerging market opportunities.

baranozdemir

Despite a well-received fiscal fourth quarter report that sent the shares up more than 50%, the reality is that Accuray (NASDAQ:ARAY) continues to struggle to show any real progress.

This recently concluded fiscal year marked the third straight year

Analyst’s Disclosure:I/we have a beneficial long position in the shares of ARAY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.