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.
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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.
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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.
