Accuray Incorporated | $ARAY Stock | Shares Crash Down On Lower Than Expected Q2 Earnings


Accuray Incorporated (NASDAQ : ARAY)



Accuray Incorporated (ARAY), a company that sells radiosurgery and radiation therapy yesterday reported their fiscal second quarter 2017 financial results. The company reported a second quarter  loss of $9.4 million and a second quarter earnings loss of $0.11 per share, which fell short of analyst estimates of a loss of $0.07 per share. Accuray reported second quarter revenues of $87.5 million.


Accuray Incorporated CEO’s Comments

“Our 17% year-over-year gross order growth during the second quarter was led by increased demand for our CyberKnife system, especially from replacement orders to existing customers,” said Joshua H. Levine, president and chief executive officer.  “In addition, gross orders were favorably impacted by solid demand for our new Radixact System, which will be fully launched by the end of the third fiscal quarter.  We performed above expectations in regards to gross order performance in the first half of the year and are seeing several indicators that lead us to believe our strong backlog growth will continue through the end of fiscal 2017 and into fiscal 2018.”  PR Newswire


ARAY Technical Analysis

ARAY opened trading yesterday at $5.45 which was down from the previous day’s trading close of $5.50. Shares closed trading yesterday at $5.75 and crashed down after market to $5.20, equivalent to a 10% decrease from the closing price. Taking a look at the daily chart we can see that the last time ARAY traded below these levels we have to go all the way back to January 26th when it traded at $5.05.

Taking a closer look at the daily chart we can see that before the spike down ARAY had been in an overall upward trend dating back to December 30th, 2016 when it traded at $4.60. ARAY has a float of 71.53 million shares and traded 2.64 times the normal daily trading volume on Tuesday. For trading purposes, I would like to see ARAY open trading on Wednesday below $5.40 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.15 from my entry position fearing anything more than that and the stock would start to fill in the gap down.  Check out these links for more information on Warrior Trading and the penny stock trading strategies we implement in their chat room!


Company Profile

Accuray Incorporated designs, develops, and sells radiosurgery and radiation therapy systems for the treatment of tumors in the body. It offers the CyberKnife System, a robotic stereotactic radiosurgery and stereotactic body radiation therapy system used for the treatment of various types of cancer and tumors in the body. The CyberKnife System automatically tracks, detects, and corrects for tumor and patient movement in real-time during the procedure, as well as enables delivery of precise, high dose radiation while patients breathe normally.

It also offers the TomoTherapy System, which consists of an integrated and versatile radiation therapy system used for the treatment of a range of cancer types. The company markets its products in the United States directly, as well as through a sales agent and group purchasing organizations; and directly and through distributors and sales agents in Europe, Japan and other countries of Asia, South America, and internationally to hospitals and stand-alone treatment facilities. Accuray Incorporated was incorporated in 1990 and is headquartered in Sunnyvale, California.  Yahoo Finance