Wall Street piled favor on California radiosurgery systems maker Accuray (NSDQ:ARAY) after the company narrowed losses in its 4th quarter, even as sales dropped by more than 15%.
Analysts at Jeffries group raised their price target on Accuray from $6.50 to $8.00, maintaining a "buy" rating on the stock. Brean Capital also reiterated a "buy" rating, maintaining a $9 price target. ARAY shares jumped 10.3% today, trading at $6.73 as of about 2:00 p.m.
Despite continued losses and sinking 4th-quarter sales, the company managed to meet analysts expectations for adjusted losses of 20¢ per share. Full-year results were less rosy.
The Sunnyvale, Calif.-based radiosurgery systems maker posted losses of $18.7 million, or 25¢ per share, on sales of $84.9 million during the 3 months ended June 30, 2013. That compared with losses of $20.3 million, or 28¢ per share, on sales of $100.5 million during the same period in 2012, according to regulatory filings.
For the full year, Accuray posted losses of $103.2 million, or $1.41¢ per share, on sales of $316 million. That compared with 2012 losses of $72 million, or $1.02 per share, on sales of $409.2 million. Adjusted for special items, the company posted per-share losses of $1.12, missing analysts’ full-year expectations by 4¢.
Shortly after the earnings report was released, Citadel Advisors filed SEC documents showing a 5.2% holding in Accuray.
