NASDAQ$VREX

Varex Imaging Corp · Q1 2025 earnings

Q1 2025 earnings · · After market close · Investor relations

Briefing

Varex Imaging reported a decrease in net loss and an increase in revenue for the first quarter of fiscal year 2025.

Varex Imaging Corporation reported a net loss of $0.1 million for the three months ended January 3, 2025, an improvement from a $0.4 million net loss in the prior quarter. Revenues increased to $199.8 million, up from $190.0 million in the previous quarter, driven by strong performance in both Medical and Industrial segments.

  • Net loss improved to $0.1 million from $0.4 million in the prior quarter.
  • Total revenues increased by $9.8 million, or 5.2%, quarter-over-quarter.
  • Medical segment revenue grew by 3.4% and Industrial segment revenue grew by 10.2%.
  • Gross profit increased by $11.4 million, or 20.0%, quarter-over-quarter.

Headline financials

Total Revenue

$200M

Previous: $190M+5.2%
EPS (adj)

-$0.01

Previous: -$0.01+0.0%
Capital Expenditures

-$4.2M

Previous: -$10.4M+59.6%
Free Cash Flow

$5.3M

Previous: -$10.9M+148.6%
Net Income

-$100K

Previous: -$500K+80.0%
Operating Income

$11.2M

Previous: $4.2M+166.7%
Gross Profit

$68.5M

Previous: $57.1M+20.0%
R&D Expense

$23.5M

Previous: $20.5M+14.6%

Revenue & EPS history

Varex Imaging · Revenue · Quarterly

$200M

Q1 2025+5.2%vs Q1 2024
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Varex Imaging · $232M total across 2 segments · Q3 2023

  • Medical
    $175M+5.0%
  • Industrial
    $56.8M+19.8%

Forward guidance

The company anticipates continued challenges and opportunities in the coming periods, with a focus on innovation and strategic investments.

Tailwinds

  • Optimism for increased opportunities in China due to a new stimulus program including the healthcare industry.
  • Continued investment in research and development to bring new products to market for global OEM customers.
  • Industrial business benefits from research and development investment and manufacturing economies of scale from the Medical side.
  • Industrial business benefits from long-term service agreements for Linatron® products.
  • Active pursuit of new potential applications for non-destructive testing products.

Headwinds

  • Uncertain economic and geopolitical environment, supply chain and logistic challenges, and geopolitical tensions.
  • Potential for renewed inflation, higher interest rates and capital costs, increased shipping costs, and supply shortages.
  • Negative impact on Medical business from the Chinese government's anti-corruption campaign related to the healthcare industry.
  • Potential for additional tariffs or retaliatory actions to impact business.
  • Uncertainty regarding the final Pillar Two model rules and their potential impact on the effective tax rate.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2025

Historical avgQ1 2025

-4.3%

Avg return

Earnings day

-3.4%

Avg return

5 days after

-3.0%

Avg return

30 days after

37%

15 / 41 earnings

Positive

+22.1%

Q1 2021

Best reaction

-34.7%

Q2 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-16.9%-14.9%
Q1 2026-3.8%-4.5%-23.6%
Q4 2025-13.7%-7.1%+3.6%
Q2 2025-20.5%-13.9%-2.7%
Q1 2025-19.3%-11.6%-15.7%
Q4 2024+9.2%+17.8%+1.8%
Q3 2024-12.2%-21.2%-15.6%
Q2 2024-6.0%-4.4%-6.8%
Q1 2024-8.4%-8.4%-8.6%
Q4 2023+3.1%+1.7%+12.7%
Q3 2023-3.8%-2.6%-15.5%
Q2 2023+17.6%+25.5%+25.6%
Q1 2023-10.0%-7.2%-14.6%
Q4 2022+3.8%-1.6%-10.7%
Q3 2022+4.1%-0.6%-0.3%
Q2 2022+11.5%+11.5%+15.8%
Q1 2022-5.3%-8.6%-4.8%
Q4 2021+17.1%+15.0%+8.7%
Q3 2021+1.9%+7.3%+10.2%
Q2 2021+2.6%+2.0%+6.1%
Q1 2021+22.1%+19.3%+21.0%
Q4 2020-3.2%+1.0%+16.6%
Q3 2020-21.2%-21.1%-34.3%
Q2 2020-34.7%-32.9%-38.3%
Q1 2020-5.3%-5.3%-25.3%
Q4 2019-9.7%-7.5%-3.5%
Q3 2019-15.8%-13.3%-5.0%
Q2 2019-9.1%-8.1%-16.4%
Q1 2019+15.7%+8.8%+15.0%
Q4 2018-8.3%-1.8%-10.8%
Q3 2018-25.7%-25.5%-17.8%
Q2 2018-1.6%-0.3%+1.1%
Q1 2018-18.5%-15.9%-15.8%
Q4 2015-1.2%-0.2%+7.2%
Q4 2017+1.8%+2.6%+10.3%
Q3 2016+0.8%-0.2%+9.4%
Q3 2017-8.2%-5.1%+1.3%
Q2 2016+0.2%+0.2%-3.3%
Q2 2017+0.7%+1.2%+3.0%
Q1 2017-2.4%-5.1%-0.3%
Q4 2016-2.4%-5.1%-0.3%
Q1 2016

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