2023-05-11 15:17:23 ET
ViewRay ( NASDAQ: VRAY ) shares lost ~16% on Thursday after the MedTech company withdrew its full-year guidance prompting B. Riley to downgrade the stock to Neutral from Buy.
While the company’s Q1 2023 earnings aligned with Street forecasts, its topline missed estimates as revenue for the quarter reached $22.5M with ~19% YoY growth, indicating a slowdown from ~70% YoY growth in the preceding quarter.
Alongside the financials, the developer of radiation therapy systems also announced plans to evaluate strategic alternatives, including a sale or merger, and unveiled a cost reduction program expected to bring $19M – $23M cost savings annually.
The program involves a ~11% cut to its staff, including the departure of chief financial officer Bill Burke who will be replaced by VP of Finance and Investor Relations Jake Signoriello on an interim basis.
Despite its goal to realize ~65% of these cost savings in fiscal 2023, Denver, Colorado-based VRAY withdrew its guidance, citing the current market conditions and ongoing strategic review.
In response to these events, B. Riley analyst Neil Chatterji downgraded the stock and slashed its price target to $1 from $4 per share, noting the need for clarity on the company’s future path.
More about ViewRay
- ViewRay stock extends losses as Street downgrades after guidance cut
- ViewRay: Shares Crater As Company Warns Of Slower Growth, Higher Cash Burn
For further details see:
ViewRay hits 52-week low after pulling guidance