VREX Earnings Prediction
The chart below shows how VREX performed 10 days before and after its earnings report, based on data from the past quarters. Typically, VREX sees a -0.32% change in stock price 10 days leading up to the earnings, and a -4.61% change 10 days following the report. On the earnings day itself, the stock moves by +0.25%. This data can give you a slight idea of what to expect for the next quarter's release.
VREX Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
205.70M
-9.54%
-1.63%
Gross Margin
32.62%
-4.90%
1.97%
Operating Margin
5.30%
-50.42%
19.10%
Net Margin
-24.26%
-272.42%
-3469.44%
EPS
-1.22
-405.00%
-4166.67%
No Data Available
VREX Earnings Analysis
Varex Imaging Corporation Common Stock Corporation (VREX.O) Earnings Conference Call
Positive
Strong Industrial Segment Performance: Fourth quarter revenues were at the high-end of our guidance range, driven mainly by continued strength in our Industrial segment.
Cash Position Improvement: We ended the fourth quarter and fiscal year with $213 million of cash, cash equivalents, and marketable securities on balance sheet, up $18 million compared to prior fiscal year end.
Strong Q4 Financial Performance: Non-GAAP gross margin in the fourth quarter was 33%, adjusted EBITDA in the fourth quarter was $23 million and non-GAAP EPS was $0.19, exceeding the high-end of our guidance.
Strong Operational Performance: For fiscal 2024, our adjusted EBITDA was $89 million and 11% of sales, indicating strong operational performance.
Medical Imaging Demand Outlook: We are optimistic that medical imaging demand will improve in China and Varex is well-positioned to benefit when growth resumes.
Negative
Fourth Quarter Revenue Decline: Revenue in the fourth quarter decreased 10% year-over-year.
Segment Revenue Decline: Revenue in the Medical segment decreased 12% year-over-year, while Industrial segment revenue decreased 4% year-over-year.
Gross Margin Decline Analysis: Non-GAAP gross margin in the fourth quarter was 33%, a decrease of 270 basis points year-over-year, primarily due to lower volume and an unfavorable sales mix in our Industrial segment.
Operating Income Decline: Operating income was $11 million, a decrease of $15 million from Q4 of fiscal 2023, with operating margin down from 13% to 7%.
Net Loss Analysis: Net loss was $50 million, primarily due to a valuation allowance related non-cash tax charge of $52 million.
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VREX Earning Call Sentiment
Varex Imaging Corporation (VREX) Q4 2024 Earnings Call Transcript
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VREX.O
-3.87%Positive
The earnings call revealed a 10% revenue decline YoY and a net loss due to a significant tax charge. The lack of a shareholder return plan, decreased gross margins, and increased operating expenses further contribute to negative sentiment. Although there is some optimism about photon counting and market positioning in China, the Q&A highlighted uncertainties and management's reluctance to provide clear guidance. These factors, combined with a challenging financial performance, suggest a negative stock price reaction in the short term.