Shares of radiation therapy systems provider ViewRay (NASDAQ:VRAY) are tanking today after the company announced preliminary first-quarter numbers.
Revenue for the quarter is seen at $23 million compared to $19 million in the year-ago period. In contrast, the net loss is seen widening to $29 million from $26 million a year ago. Analysts expect the company to post a net loss per share of $0.15 for the quarter on May 4. During Q1, ViewRay bagged orders worth $68 million. Further, the total backlog increased to $411 million from $331 million a year ago.
In the current macroeconomic environment, ViewRay expects delayed delivery schedules. Consequently, revenue growth for fiscal 2023 is pegged between flat to 15% (earlier guidance between 25% to 40% growth). Further, adjusted EBITDA loss is estimated between $75 million and $85 million (earlier guidance between a loss of 70 million to $80 million.
Additionally, the company is looking at strategic alternatives and has roped in Goldman Sachs as a financial advisor. The alternatives include a sale, merger, or business combination.
Overall, the Street has a $7 consensus price target of VRAY pointing to a hefty 132.56% potential upside in the stock. That’s after a nearly 31.6% slide in VRAY shares so far in 2023.
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