NASDAQ$VREX

Varex Imaging Corp · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Announced financial results for the second quarter of fiscal year 2020.

Varex Imaging Corporation reported Q2 2020 revenues of $197 million, a slight increase from the prior year. The company experienced a shift in mix between business segments, impacting overall margins. Net loss was ($0.05) per diluted share, while adjusted net earnings were $0.12 per diluted share.

  • 2Q20 Revenues were $197 million.
  • 2Q20 Gross margin was 29%, adjusted gross margin was 32%.
  • 2Q20 Operating earnings margin was 1%, adjusted operating earnings margin was 5%.
  • 2Q20 Net earnings were ($0.05) per diluted share, adjusted net earnings were $0.12 per diluted share.

Headline financials

Total Revenue

$197M

Previous: $196M+0.6%
EPS (adj)

$0.12

Previous: $0.34-64.7%
Capital Expenditures

-$14.2M

Previous: -$7.6M-86.8%
Free Cash Flow

-$16.1M

Previous: -$1.8M-794.4%
Net Income

-$1.9M

Previous: $5.8M-132.8%
Operating Income

$1.4M

Previous: $14.5M-90.3%
Gross Profit

$57.6M

Previous: $64.4M-10.6%
Cash & Equivalents

$24.2M

Previous: $31M-21.9%
Total Assets

$1.08B

Previous: $966M+12.1%
Stock-Based Comp

$3.3M

Previous: $3M+10.0%

Revenue & EPS history

Varex Imaging · Revenue · Quarterly

$197M

Q2 2020+0.6%vs Q2 2019
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Revenue by segment

Varex Imaging · $197M total across 2 segments · Q2 2020

  • Medical
    $155M+4.4%
  • Industrial
    $41.6M-11.3%

Forward guidance

Due to the unprecedented nature of the COVID-19 pandemic and its impact on the global economy, Varex Imaging Corporation has withdrawn its previously issued guidance for fiscal year 2020. The company expects the uncertainty to continue for at least the remainder of the current fiscal year.

Headwinds

  • Significant uncertainty in demand for certain products for medical and industrial applications.
  • Increased variability in its supply chain
  • Increased variability in manufacturing productivity.
  • Unpredictability of when and how strong a global economic recovery may be.
  • Implementing actions to reduce its expenses and cash disbursements

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 Q2 2020

Historical avgQ2 2020

-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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro