Why ViewRay, Inc. Jumped Today

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What happened

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Shares of ViewRay (NASDAQ: VRAY), the manufacturer of the MRIdian Linac system, rose 15% as of 3:30 p.m. EST on Thursday on big volume. However, there wasn't any company-specific news to justify the big move, so investors can likely chalk up the jump to continued momentum.

So what

ViewRay reported its third-quarter results earlier this week. Here's a quick review of the headline numbers:

  • New orders totaled $29.9 million during the quarter, which was up 22% over the year-ago period.
  • Two MRIdian Linac systems were installed during the period, allowing the company to book $12.2 million in total revenue.
  • Backlog at quarter-end hit $194.8 million, up 55% year over year. This figure would have been higher, but a customer canceled an order during the period.
  • Net loss for the period was $11.2 million, or $0.19 per share. That was worse than the $0.12 loss that Wall Street was expecting.
  • Cash balance at quarter-end was $34.4 million. However, the company raised $50 million in October through a common stock offering.

Management also shared that it was recently awarded a tender offer for a system placement in Zurich. That's on top of the two bookings that it recorded in Denmark earlier this month.

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Turning to guidance, management reiterated its expectation of delivering seven or eight systems during the year. However, it also lowered its full-year revenue guidance to a range of $42 million to $47 million; that's a $3 million reduction from its prior guidance range. Management said that the revision was due to a MRIdian Cobalt system upgrade that will likely be pushed into early 2018.

Overall, the company's results continue to show the MRIdian Linac system gaining steam in the marketplace.

Now what

ViewRay's investors are having a year to remember. Shares have rallied more than 234% since January, as investor optimism for the MRIdian Linac system continues to rise. That's allowed management to raise capital multiple times on favorable terms, which is great news since the company is currently investing heavily in its commercial team.

Will ViewRay be able to continue delivering strong results for its investors? That question is still up in the air, but there's no doubt that this company currently has a lot of business momentum working in its favor right now.

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Brian Feroldi has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.