VAREX IMAGING (VREX) Q4 Earnings Analysis: Key Metrics vs. Estimates
Quarterly Performance: VAREX IMAGING reported a revenue of $228.9 million for Q3 2025, an 11.3% increase year-over-year, with an EPS of $0.37, significantly surpassing the previous year's $0.19.
Earnings Surprises: The company's revenue exceeded the Zacks Consensus Estimate by 3.83%, and it achieved an EPS surprise of 105.56%, compared to the consensus estimate of $0.18.
Market Positioning: VAREX IMAGING specializes in semiconductor products not produced by major players like NVIDIA, positioning itself to benefit from the anticipated growth in the semiconductor market, projected to reach $971 billion by 2028.
Growth Potential: With strong earnings growth and an expanding customer base, VAREX IMAGING is well-positioned to meet the increasing demand for technologies related to Artificial Intelligence, Machine Learning, and the Internet of Things.
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Varex Imaging Reports Strong Q1 2026 Earnings with Growth in Industrial Segment
- Revenue Growth: Varex Imaging reported Q1 2026 revenue of $210 million, a 5% year-over-year increase, driven by strong cargo systems performance and a 17% rise in the Industrial segment, nearing the high end of guidance.
- Stable Medical Segment: The Medical segment contributed $145 million, accounting for 69% of total revenue, with continued strength in CT equipment and increased customer engagement around next-generation system designs, boosting market confidence despite past challenges.
- Optimistic Outlook: Management provided Q2 2026 revenue guidance of $210 million to $225 million, with non-GAAP EPS expected between $0.15 and $0.25, reflecting confidence in future demand, particularly in the Industrial sector.
- Inventory Management Challenges: Despite a net income of $2 million in Q1, inventory rose by $29 million to $328 million, prompting management to plan a reduction of $10 to $15 million in inventory over the next quarters to address potential market volatility.
Varex Imaging to Announce Q1 Earnings on February 10
- Earnings Announcement Date: Varex Imaging is set to release its Q1 2023 earnings on February 10 after market close, with consensus EPS estimate at $0.13, reflecting a 50% year-over-year decline, and revenue estimate at $207.8 million, down 2.4% year-over-year, indicating challenges ahead for the company.
- Historical Performance Review: Over the past two years, Varex Imaging has beaten EPS estimates 63% of the time and revenue estimates 63% of the time, suggesting a degree of stability in its financial performance despite current pressures.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen one upward revision and one downward revision, while revenue estimates have experienced three upward revisions with no downward adjustments, reflecting market divergence and adjustments regarding the company's future performance.
- Industry Outlook: Varex Imaging outlines a stable outlook for China and targets growth in its industrial segment for 2026, indicating the company's pursuit of growth opportunities in the global market despite current financial data showing some strain.
Wall Street Analysts Predict VAREX IMAGING (VREX) May Rise by 29.92%: Important Insights Before You Invest
Stock Performance and Analyst Predictions: VAREX IMAGING (VREX) shares have risen 3.2% recently, with Wall Street analysts projecting a mean price target of $15.33, suggesting a potential upside of 29.9%, although estimates vary significantly.
Skepticism Towards Price Targets: Investors are cautioned against relying solely on price targets for investment decisions, as analysts may set overly optimistic targets influenced by business relationships, despite some agreement indicating potential price movement.
Earnings Estimate Revisions: Analysts show growing optimism for VREX's earnings, with a 1% increase in the Zacks Consensus Estimate over the past month, which correlates with potential stock price movements.
Zacks Rank and Future Recommendations: VREX holds a Zacks Rank #2 (Buy), placing it in the top 20% of stocks based on earnings estimates, and Zacks Investment Research is preparing to release its top stock picks for 2026.
Eli Lilly Set for Over 12% Surge? Check Out 10 Leading Analyst Predictions for Wednesday
Analyst Downgrades: Morgan Stanley lowered Harley-Davidson's price target from $25 to $21 while maintaining an Underweight rating, and Citigroup cut Westlake Corp's target from $88 to $75 but kept a Buy rating.
Analyst Upgrades: B of A Securities raised Baidu's price target from $100 to $151 with a Buy rating, and Truist Securities increased Eli Lilly's target from $1,038 to $1,182, also maintaining a Buy rating.
Mixed Ratings: Oppenheimer reduced Varex Imaging's price target from $23 to $18 while keeping an Outperform rating, and Evercore ISI Group cut Home Depot's target from $450 to $425 but maintained an Outperform rating.
Other Notable Changes: HC Wainwright & Co. lowered LifeMD's target from $13 to $9 while keeping a Buy rating, and UBS cut Aecom's target from $153 to $148 while maintaining a Buy rating.
Varex Imaging Stock Drops 13% Despite Revenue Increase in Q4; FY26 Forecast Weak
Stock Performance: Varex Imaging Corporation (VREX) saw a decline of 13.28% in its stock price, closing at $10.28 after releasing its fourth quarter and full-year 2025 financial results.
Revenue Growth: The company reported a fourth-quarter revenue increase of 11% year-over-year to $229 million, with significant growth in its Industrial segment and CT tube business, while full-year revenue reached $845 million, up about 4%.
Net Loss and Guidance: Despite revenue growth, Varex reported a net loss of $1.70 per share for FY25 and provided cautious guidance for FY26, anticipating first-quarter revenues between $200 million and $215 million and adjusted EPS of $0.05 to $0.25.
Market Reaction: The announcement led to unusually high trading volume as investors reacted to the mixed results and conservative outlook, with the stock's 52-week range noted at approximately $9.40 - $20.80.
Oppenheimer Keeps Outperform Rating on Varex Imaging, Reduces Price Target to $18
Real-time Intelligence: Benzinga Pro offers the fastest news alerts for traders to stay updated on market movements.
Exclusive Content: The platform provides exclusive stories and insights generated by Benzinga reporters for its users.
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Market Winning Tools: Traders utilize Benzinga Pro's tools and intelligence to improve their chances of success in the stock market.
Varex Imaging Reports Strong Q1 2026 Earnings with Growth in Industrial Segment
- Revenue Growth: Varex Imaging reported Q1 2026 revenue of $210 million, a 5% year-over-year increase, driven by strong cargo systems performance and a 17% rise in the Industrial segment, nearing the high end of guidance.
- Stable Medical Segment: The Medical segment contributed $145 million, accounting for 69% of total revenue, with continued strength in CT equipment and increased customer engagement around next-generation system designs, boosting market confidence despite past challenges.
- Optimistic Outlook: Management provided Q2 2026 revenue guidance of $210 million to $225 million, with non-GAAP EPS expected between $0.15 and $0.25, reflecting confidence in future demand, particularly in the Industrial sector.
- Inventory Management Challenges: Despite a net income of $2 million in Q1, inventory rose by $29 million to $328 million, prompting management to plan a reduction of $10 to $15 million in inventory over the next quarters to address potential market volatility.
Varex Imaging to Announce Q1 Earnings on February 10
- Earnings Announcement Date: Varex Imaging is set to release its Q1 2023 earnings on February 10 after market close, with consensus EPS estimate at $0.13, reflecting a 50% year-over-year decline, and revenue estimate at $207.8 million, down 2.4% year-over-year, indicating challenges ahead for the company.
- Historical Performance Review: Over the past two years, Varex Imaging has beaten EPS estimates 63% of the time and revenue estimates 63% of the time, suggesting a degree of stability in its financial performance despite current pressures.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen one upward revision and one downward revision, while revenue estimates have experienced three upward revisions with no downward adjustments, reflecting market divergence and adjustments regarding the company's future performance.
- Industry Outlook: Varex Imaging outlines a stable outlook for China and targets growth in its industrial segment for 2026, indicating the company's pursuit of growth opportunities in the global market despite current financial data showing some strain.
Wall Street Analysts Predict VAREX IMAGING (VREX) May Rise by 29.92%: Important Insights Before You Invest
Stock Performance and Analyst Predictions: VAREX IMAGING (VREX) shares have risen 3.2% recently, with Wall Street analysts projecting a mean price target of $15.33, suggesting a potential upside of 29.9%, although estimates vary significantly.
Skepticism Towards Price Targets: Investors are cautioned against relying solely on price targets for investment decisions, as analysts may set overly optimistic targets influenced by business relationships, despite some agreement indicating potential price movement.
Earnings Estimate Revisions: Analysts show growing optimism for VREX's earnings, with a 1% increase in the Zacks Consensus Estimate over the past month, which correlates with potential stock price movements.
Zacks Rank and Future Recommendations: VREX holds a Zacks Rank #2 (Buy), placing it in the top 20% of stocks based on earnings estimates, and Zacks Investment Research is preparing to release its top stock picks for 2026.
Eli Lilly Set for Over 12% Surge? Check Out 10 Leading Analyst Predictions for Wednesday
Analyst Downgrades: Morgan Stanley lowered Harley-Davidson's price target from $25 to $21 while maintaining an Underweight rating, and Citigroup cut Westlake Corp's target from $88 to $75 but kept a Buy rating.
Analyst Upgrades: B of A Securities raised Baidu's price target from $100 to $151 with a Buy rating, and Truist Securities increased Eli Lilly's target from $1,038 to $1,182, also maintaining a Buy rating.
Mixed Ratings: Oppenheimer reduced Varex Imaging's price target from $23 to $18 while keeping an Outperform rating, and Evercore ISI Group cut Home Depot's target from $450 to $425 but maintained an Outperform rating.
Other Notable Changes: HC Wainwright & Co. lowered LifeMD's target from $13 to $9 while keeping a Buy rating, and UBS cut Aecom's target from $153 to $148 while maintaining a Buy rating.
Varex Imaging Stock Drops 13% Despite Revenue Increase in Q4; FY26 Forecast Weak
Stock Performance: Varex Imaging Corporation (VREX) saw a decline of 13.28% in its stock price, closing at $10.28 after releasing its fourth quarter and full-year 2025 financial results.
Revenue Growth: The company reported a fourth-quarter revenue increase of 11% year-over-year to $229 million, with significant growth in its Industrial segment and CT tube business, while full-year revenue reached $845 million, up about 4%.
Net Loss and Guidance: Despite revenue growth, Varex reported a net loss of $1.70 per share for FY25 and provided cautious guidance for FY26, anticipating first-quarter revenues between $200 million and $215 million and adjusted EPS of $0.05 to $0.25.
Market Reaction: The announcement led to unusually high trading volume as investors reacted to the mixed results and conservative outlook, with the stock's 52-week range noted at approximately $9.40 - $20.80.
Oppenheimer Keeps Outperform Rating on Varex Imaging, Reduces Price Target to $18
Real-time Intelligence: Benzinga Pro offers the fastest news alerts for traders to stay updated on market movements.
Exclusive Content: The platform provides exclusive stories and insights generated by Benzinga reporters for its users.
Community Engagement: Over 10,000 serious traders are part of the Benzinga Pro community, enhancing collaboration and information sharing.
Market Winning Tools: Traders utilize Benzinga Pro's tools and intelligence to improve their chances of success in the stock market.
