Varex Imaging (NASDAQ:VREX) Hits New 1-Year High After Earnings Beat

Shares of Varex Imaging (NASDAQ:VREX – Get Free Report) hit a new 52-week high during mid-day trading on Monday following a stronger than expected earnings report. The stock traded as high as $18.41 and last traded at $18.3850, with a volume of 1318309 shares changing hands. The stock had previously closed at $12.41.

The company reported $0.31 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.21 by $0.10. Varex Imaging had a negative net margin of 9.64% and a positive return on equity of 8.19%. The firm had revenue of $210.50 million during the quarter, compared to analyst estimates of $215.50 million.

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Varex Imaging News Summary

Here are the key news stories impacting Varex Imaging this week:

• Positive Sentiment: Teledyne takeover provides a significant valuation catalyst. Teledyne will pay $18.90 per Varex share, subject to customary closing conditions and approvals. The offer represents a substantial premium to Varex’s recent trading level, giving investors a clearly defined cash exit value. Teledyne to acquire Varex Imaging in $1.1 billion deal
• Positive Sentiment: Varex delivered an earnings beat on profit. Quarterly earnings per share exceeded the analyst consensus estimate of $0.21, with the company reporting $15.7 million of attributable net income and $21 million in operating cash flow. Varex Imaging earnings results
• Neutral Sentiment: Revenue growth remained modest but positive. Fiscal third-quarter revenue was $210.5 million, up 4% year over year, including $134.0 million from Medical and $76.5 million from Industrial. The company also reported a 36.4% GAAP gross margin and $99 million in cash, cash equivalents and marketable securities. Varex Announces Financial Results for Third Quarter Fiscal Year 2026
• Negative Sentiment: Revenue fell short of expectations and the company withdrew normal investor communication. Revenue missed the approximately $215.5 million consensus estimate. Varex canceled its earnings conference call and will not provide financial guidance because of the Teledyne transaction, reducing visibility into standalone operating prospects. The quarter also included a $7 million reduction to revenue for expected customer reimbursements, partly offset by a $17 million U.S. Customs tariff refund.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on VREX shares. Weiss Ratings restated a “sell (d-)” rating on shares of Varex Imaging in a report on Wednesday, June 24th. Zacks Research cut Varex Imaging from a “strong-buy” rating to a “hold” rating in a report on Monday, July 27th. Wall Street Zen upgraded Varex Imaging from a “hold” rating to a “buy” rating in a research report on Saturday, July 4th. Finally, Sidoti reissued a “neutral” rating and set a $19.00 target price on shares of Varex Imaging in a research note on Monday. Two equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $16.88.

Check Out Our Latest Stock Report on Varex Imaging

Institutional Trading of Varex Imaging

Hedge funds have recently made changes to their positions in the business. Pzena Investment Management LLC purchased a new position in shares of Varex Imaging in the second quarter valued at approximately $45,312,000. BlackRock Inc. acquired a new position in shares of Varex Imaging in the second quarter valued at approximately $40,624,000. Vanguard Group Inc. increased its stake in Varex Imaging by 4.4% during the 3rd quarter. Vanguard Group Inc. now owns 2,989,847 shares of the company’s stock worth $37,074,000 after buying an additional 126,396 shares during the period. Cooke & Bieler LP increased its stake in Varex Imaging by 2.2% during the 4th quarter. Cooke & Bieler LP now owns 1,632,525 shares of the company’s stock worth $19,019,000 after buying an additional 35,042 shares during the period. Finally, Rice Hall James & Associates LLC acquired a new stake in Varex Imaging during the 2nd quarter worth approximately $15,080,000.

Varex Imaging Stock Performance

The company has a current ratio of 3.20, a quick ratio of 1.43 and a debt-to-equity ratio of 0.67. The company has a market capitalization of $774.01 million, a price-to-earnings ratio of -9.19 and a beta of 0.89. The stock’s fifty day simple moving average is $10.77 and its 200-day simple moving average is $11.51.

Varex Imaging Company Profile

(Get Free Report)

Varex Imaging Corporation is a global provider of X-ray imaging components and solutions for the medical, security and industrial markets. The company designs, develops and manufactures a broad range of products that convert X-ray energy into high-resolution digital images. Its portfolio includes X-ray tubes, flat panel detectors, digital sensors, specialty radiographic tubes and related software, all engineered to meet the demanding requirements of original equipment manufacturers (OEMs) in diagnostic imaging, computed tomography (CT), fluoroscopy, mammography, dental radiography and non-destructive testing applications.

The company’s medical imaging offerings support a wide spectrum of clinical modalities, from portable radiography systems to advanced CT scanners, enhancing image quality and dose efficiency for healthcare providers.

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