Varex Imaging Q3 revenue rises; Teledyne to acquire co for $1.1 billion
VREX•Drivers and outlook
- Industrial growth — The company said strong growth in Industrial and expansion in cargo and vehicle inspection systems drove product sales before tariff adjustments.
- Tariff refunds — Recovery of previously paid tariffs and related customer reimbursement accrual boosted third-quarter gross profit by about $10 million.
- Segment mix — Industrial revenue increased while Medical revenue declined year over year, affecting overall revenue composition.
The company said it will not provide financial guidance because of the pending Teledyne transaction.
Key reported figures and analyst view
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q3 Revenue | Miss | $210.5 million | $213.94 million |
| Q3 Adjusted EPS | Beat | $0.31 | $0.21 |
| Q3 Net Income | $15.90 million | ||
| Q3 Operating Income | $22.80 million | ||
| Q3 Pretax Profit | $16.20 million |
The current average analyst rating on the shares is buy, with 4 strong buy or buy ratings, 1 hold rating, and no sell or strong sell ratings. The median 12-month price target is $18.00, about 45% above the August 7 closing price of $12.41.
The stock recently traded at next 12-month earnings, versus a P/E of 12 three months ago.
