Accuray Incorporated ARAY reported a loss of 4 cents per share for the fourth quarter of fiscal 2022, narrower than the loss of 12 cents per share in the year-ago period. The loss per share was also narrower than the Zacks Consensus Estimate of a loss of 6 cents per share.\nOur projection of loss per share was 6 cents.\nFull-year loss per share was at 6 cents, narrower than the loss of 7 cents at the end of fiscal 2021. The metric was also narrower than the Zacks Consensus Estimate of a loss of 9 cents per share.\nOur projection of loss per share for fiscal 2022 was 8 cents.\nRevenues in Detail\nAccuray registered revenues of $110 million in the fiscal 2022 fourth quarter, down 0.8% year over year. The figure beat the Zacks Consensus Estimate by 4.9%.\nThe second-quarter revenue compares to our estimate of $104 million.\nFull-year revenues were $429.9 million, reflecting an 8.5% improvement from the comparable fiscal 2021 period. The metric topped the Zacks Consensus Estimate by 1.2%.\nThe fiscal full-year revenue compares to our estimate of $423.9 million.\nSegmental Details\nAccuray derives revenues from two sources — Products and Services.\nIn the fiscal fourth quarter, Product revenues improved 3.4% from the year-ago quarter to $58 million. CyberKnife accounted for around 35% of revenue unit volume in the quarter, whereas the TomoTherapy platform accounted for the remaining 65%.\nThis figure compares to our Product revenues’ Q4 projection of $52.7 million.\nServices revenues fell 5.1% from the year-ago quarter to $51.9 million, primarily due to unfavorable foreign exchange impacts.\nThis figure compares to our Services revenues’ Q4 projection of $51.3 million.\nGross orders totaled $88.3 million, down 21.6% year over year. This figure compares to our gross orders’ Q4 projection of $115.3 million.\nAccuray Incorporated Price, Consensus and EPS Surprise\nMargin Trend\nIn the quarter under review, Accuray’s gross profit fell 1.6% to $43 million. Gross margin contracted 32 basis points (bps) to 39.1%.\nWe had projected 37.9% of gross margin for Q4.\nSelling and marketing expenses rose 10.4% to $14.4 million. Research and development expenses fell 5.1% year over year to $14.6 million, while general and administrative expenses went up 7.3% year over year to $12 million. Total operating expenses of $40.9 million rose 3.5% year over year.\nTotal operating profit was $2 million, reflecting a 50.6% decline from the prior-year quarter. Operating margin in the fiscal fourth quarter contracted by 187 bps to 1.9%.\nWe had projected 0.4% of operating margin for Q4.\nFinancial Position\nAccuray exited fiscal 2022 with cash and cash equivalents of $88.7 million compared with $116.4 million at the end of fiscal 2021.\nTotal debt (including short-term debt) at the end of fiscal 2022 was $180.5 million compared with $173.8 million at the end of fiscal 2021.\n2023 Guidance\nAccuray has initiated its outlook for fiscal 2023 based on current expectations.\nThe company expect its fiscal year revenues to be $447 million-$455 million, reflecting a year-over-year growth in the range of 4-6%. The Zacks Consensus Estimate for the same is pegged at $450.5 million.\nOur Take\nAccuray exited the fiscal fourth quarter of 2022 with better-than-expected results. The year-over-year uptick in Product revenues is encouraging. Continued strong demand for the ClearRT Helical kVCT Imaging for the Radixact System and VOLO Ultra enhancement to the Accuray Precision treatment planning system for the Radixact System and CyberKnife S7 platform are impressive. Favorable real-world data and clinical studies regarding Accuray’s CyberKnife System raises optimism regarding the stock. Accuray’s collaboration with Limbus AI Inc. to enhance Accuray’s adaptive radiotherapy capabilities (in June) is another highlight during the reported quarter.\nHowever, the company’s year-over-year decline in the overall top line and Services revenues is disappointing. The decline in gross orders is also worrying. Contraction of both margins also does not bode well.\nZacks Rank and Key Picks\nAccuray currently carries a Zacks Rank #3 (Hold).\nSome better-ranked stocks in the broader medical space that have announced quarterly results are Quest Diagnostics Incorporated DGX, AMN Healthcare Services, Inc. AMN and Zimmer Biomet Holdings, Inc. ZBH.\nQuest Diagnostics, carrying a Zacks Rank #2 (Buy), reported second-quarter 2022 adjusted EPS of $2.36, which beat the Zacks Consensus Estimate by 9.8%. Revenues of $2.45 billion outpaced the consensus mark by 7.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.\nQuest Diagnostics has an earnings yield of 6.8% compared with the industry’s 3.8%. DGX’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average being 12.1%.\nAMN Healthcare, sporting a Zacks Rank #1, reported second-quarter 2022 adjusted EPS of $3.31, which beat the Zacks Consensus Estimate by 11.8%. Revenues of $1.43 billion outpaced the consensus mark by 4.8%.\nAMN Healthcare has an estimated long-term growth rate of 3.2%. AMN’s earnings surpassed estimates in all the trailing four quarters, the average being 15.7%.\nZimmer Biomet reported second-quarter 2022 adjusted EPS of $1.82, which surpassed the Zacks Consensus Estimate by 11.7%. Second-quarter revenues of $1.78 billion outpaced the Zacks Consensus Estimate by 3.5%. It currently has a Zacks Rank #2.\nZimmer Biomet has an estimated long-term growth rate of 5%. ZBH’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average being 7.4%.\nZacks' Top Picks to Cash in on Electric Vehicles\nBig money has already been made in the Electric Vehicle (EV) industry. But, the EV revolution has not hit full throttle yet. There is a lot of money to be made as the next push for future technologies ramps up. Zacks’ Special Report reveals 5 picks investorsSee 5 EV Stocks With Extreme Upside Potential >>\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nAccuray Incorporated (ARAY): Free Stock Analysis Report\nQuest Diagnostics Incorporated (DGX): Free Stock Analysis Report\nAMN Healthcare Services Inc (AMN): Free Stock Analysis Report\nZimmer Biomet Holdings, Inc. (ZBH): Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nThe views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.