NASDAQ$VREX

Varex Imaging Corp · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Varex Imaging's financial performance stabilized, with revenues comparable to the previous quarter and gross margin improving sequentially.

Varex Imaging Corporation announced its Q4 and FY2020 financial results, with Q4 revenues of $170 million. The company's GAAP net loss was $0.66 per diluted share. The impact of COVID-19 on the business has started to stabilize.

  • Revenues for the fourth quarter of fiscal year 2020 exceeded expectations and were comparable to the third quarter of fiscal year 2020.
  • Strong sales of our CT tubes were partially offset by continued decline in sales for other medical and industrial products.
  • Gross margin for the quarter improved sequentially from the third quarter due to a slight improvement in product mix and the start of cost reduction actions implemented late in the third quarter and during the fourth quarter
  • Varex resolved the substantial doubt about its ability to continue as a going concern by fully paying off its prior credit facility with net proceeds from the notes transaction.

Headline financials

Total Revenue

$170M

Previous: $202M-16.0%
EPS (adj)

-$0.04

Previous: $0.46-108.7%
Capital Expenditures

$4M

Previous: $6.5M-38.5%
Free Cash Flow

-$15.8M

Previous: $16.4M-196.3%
Net Income

-$25.4M

Previous: $8.1M-413.6%
Operating Income

-$12.9M

Previous: $16.2M-179.6%
Gross Profit

$45.2M

Previous: $71.6M-36.9%
Cash & Equivalents

$101M

Previous: $29.9M+236.5%
Total Assets

$1.14B

Previous: $1.04B+9.7%
Stock-Based Comp

$3.2M

Previous: $3M+6.7%

Revenue & EPS history

Varex Imaging · Revenue · Quarterly

$170M

Q4 2020-16%vs Q4 2019
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

Varex Imaging · $170M total across 2 segments · Q4 2020

  • Medical
    $136M
  • Industrial
    $34.1M

Forward guidance

For the first quarter of fiscal year 2021, Varex expects revenue to be between $160 million and $180 million, and non-GAAP earnings per diluted share is expected to be between ($0.15) and $0.10.

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 Q4 2020

Historical avgQ4 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

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