Varex Imaging (NASDAQ:VREX) Reports Quarterly Earnings

On Thursday, Varex Imaging (NASDAQ:VREX) announced its latest quarterly earnings results. The company reported earnings per share (EPS) of $0.07, which exceeded analysts' expectations, who had predicted an EPS of $0.04. This performance represents a positive variance of $0.03. However, Varex Imaging also reported a negative net margin of 5.88%, while achieving a positive return on equity of 3.85%. Furthermore, the company updated its guidance for the second quarter of 2025, projecting EPS to be between $0.050 and $0.200.

Stock Performance

In response to the earnings announcement, Varex Imaging's stock saw an increase of 4.3%, rising by $0.63 to reach $15.20 during trading on Thursday. A total of 673,770 shares changed hands, compared to the average trading volume of 410,828 shares. Over the past year, Varex Imaging has seen a low of $10.19 and a high of $18.50. The company's market capitalization stands at approximately $626.70 million, and its price-to-earnings (P/E) ratio is currently -12.99. The stock exhibits a beta of 0.62, indicating lower volatility compared to the market. Additionally, the company holds a debt-to-equity ratio of 0.72, a quick ratio of 1.97, and a current ratio of 3.32.

Analysts' Ratings

On January 30th, StockNews.com modified its rating for Varex Imaging, changing it from a "buy" rating to a "hold" rating in a recent report. This adjustment reflects the analysts' cautious outlook for the stock following the earnings results.

Company Overview

Varex Imaging Corporation is engaged in designing, manufacturing, and selling components for X-ray imaging. The company operates primarily through two segments: Medical and Industrial. The Medical segment focuses on the development of X-ray imaging components, which include X-ray tubes, digital detectors, and various related accessories. These products are essential in providing advanced imaging solutions in medical settings.

Conclusion

The recent quarterly earnings reveal both achievements and challenges for Varex Imaging. While the company surpassed earnings expectations, negative net margins raise questions about overall profitability. Analysts seem to be adopting a more cautious stance, urging investors to consider the evolving market situation.

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