Accuray Inc. (ARAY) provides radiotherapy systems targeted for oncology, radiosurgery, etc. The company recently posted a better-than-expected top-line for the second quarter while its bottom line came in line.
Revenue increased 19.3% year-over-year to $116.3 million, exceeding estimates by $14.3 million. Gross orders with the company increased 13% year-over-year to $85.4 million during this period.
Since its launch in December 2020, Accuray continues to see robust demand for its ClearRt Helical kVCT imaging for the Radixact system, with 68 orders received so far.
Notably, along with the robust revenue growth, the company also noted the supply chain challenges and operational headwinds it is facing amid the COVID-19 environment.
With these developments in mind, let us take a look at the changes in Accuray’s key risk factors that investors should know.
Risk Factors
According to the TipRanks Risk Factors tool, Accuray’s top risk category is Finance & Corporate, contributing 33% (compared to a sector average of 39%) to the total 49 risks identified. In its recent quarterly report, the company has added one key risk factor under the Finance & Corporate risk category.
Accuray noted that it is a party to certain collaborations, partnerships, strategic alliances, joint ventures, and third-party relationships and is dependent on these relationships to grow its business and market share.
These relationships are outside of the full control of Accuray and the risk remains that it may not realize the expected benefits from these arrangements at expected levels or within the anticipated time frame.
Hedge Fund Activity
According to TipRanks data, the Wall Street’s top hedge funds have decreased holdings in Accuray by 225 thousand shares in the last quarter, indicating a negative hedge fund confidence signal in the stock based on activities of 3 hedge funds. Shares are down 27.2% over the past month.
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