Latest news with #VREX
Yahoo
08-08-2025
- Business
- Yahoo
Varex Imaging Corp (VREX) Q3 2025 Earnings Call Highlights: Strong Revenue Beats Guidance Amid ...
Release Date: August 07, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Varex Imaging Corp (NASDAQ:VREX) reported third-quarter revenue of $203 million, exceeding the high end of their guidance. The industrial segment showed continued strength, with a 1% year-over-year increase in revenue. Non-GAAP gross margin was 34%, surpassing expectations due to higher volume and favorable product sales mix. The company successfully paid off $200 million in convertible notes, reducing overall debt and simplifying the capital structure. Sales in China were better than forecasted, with a 4% year-over-year increase, contributing 15% of total revenues. Negative Points Total revenue was down 3% year over year, with the medical segment declining by 4%. Operating expenses were unusually high at $148 million, primarily due to a non-cash goodwill impairment charge of $94 million. The company reported an operating loss of $81 million and a net loss of $89 million on a GAAP basis. Cash equivalents and marketable securities decreased by $73 million from the prior quarter, primarily due to debt repayment. The fluoroscopy modality sales were below their trend, indicating weaker performance in this area. Q & A Highlights Warning! GuruFocus has detected 4 Warning Signs with VREX. Q: Were there higher than expected expenses due to fulfilling orders to China within six weeks? A: (Sunny Sanniel, CEO) No, fulfilling the orders did not result in higher than normal expenses. We had the capacity to meet the demand without incurring additional costs. Q: What is the expectation for China sales in the fourth quarter? Will they be on par with Q3 or start to pick up? A: (SAM Maheshwari, CFO) We do not provide guidance by region or customer, but overall demand in China is stable and healthy. We expect it to remain normal barring any external events. Q: Are any medical OEMs testing the photon counting technology? A: (Sunny Sanniel, CEO) Yes, the big CT projects are on the medical side. We are focusing our investment in photon counting for medical CT, while also having ongoing activity in several industrial applications. Q: What is the plan for using operating cash to pay down debt? A: (SAM Maheshwari, CFO) We are in a comfortable cash position and aim to target our gross debt in the $300 to $350 million range. We plan to build up cash to be in a strong position for refinancing in the next 12 to 18 months. Q: Can you provide insights into the sustainability of the medical segment's performance going into fiscal '26? A: (SAM Maheshwari, CFO) The demand environment is healthy, with hospital CapEx and imaging investments in a decent place. We expect to enter FY26 with a stable macro demand environment, following a soft FY24 due to inventory destocking. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
31-05-2025
- Business
- Yahoo
Varex Imaging Corporation (VREX) Downgraded by S&P as Regulatory Outlook Remains Cloudy
S&P Global Ratings has downgraded its ratings on Varex Imaging Corporation (NASDAQ:VREX) because it believes the stock is surrounded by high levels of unpredictability and weaker credit metrics. Tariff drama has been lingering for quite some time now, and with uncertainty around policy implementation by the U.S. administration, the firm believes Varex's profitability and sales are under serious threat. A technician in a lab coat inspecting an X-ray imaging component. The slashing of the rating from 'B+' to 'BB-' also considers the refinancing risk of the company stemming from near-term maturities. With short-term capital structure, external factors, including capital market conditions and geopolitical risk, push the company into a vulnerable state. This isn't the first time the company has exhibited such performance. The credit assessor now expects a leverage above the downside threshold of 3.5x, with a free operating cash flow (FOCF) to debt below 12% for FY2025, much in line with last year's benchmark. No relief from the medical segment either, as the demand remains subdued. Despite the approval of a $1.4 trillion government stimulus package, the Chinese government is taking initiatives to support local vendors, putting further pressure on Varex Imaging Corporation (NASDAQ:VREX)'s sales. However, due to the company's competitive position and new contracts, S&P has extended a stable rating outlook. While we acknowledge the potential of VREX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than VREX and that has 100x upside potential, check out our report about the READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure. None.
Yahoo
30-05-2025
- Business
- Yahoo
Varex Imaging Corporation (VREX) Downgraded by S&P as Regulatory Outlook Remains Cloudy
S&P Global Ratings has downgraded its ratings on Varex Imaging Corporation (NASDAQ:VREX) because it believes the stock is surrounded by high levels of unpredictability and weaker credit metrics. Tariff drama has been lingering for quite some time now, and with uncertainty around policy implementation by the U.S. administration, the firm believes Varex's profitability and sales are under serious threat. A technician in a lab coat inspecting an X-ray imaging component. The slashing of the rating from 'B+' to 'BB-' also considers the refinancing risk of the company stemming from near-term maturities. With short-term capital structure, external factors, including capital market conditions and geopolitical risk, push the company into a vulnerable state. This isn't the first time the company has exhibited such performance. The credit assessor now expects a leverage above the downside threshold of 3.5x, with a free operating cash flow (FOCF) to debt below 12% for FY2025, much in line with last year's benchmark. No relief from the medical segment either, as the demand remains subdued. Despite the approval of a $1.4 trillion government stimulus package, the Chinese government is taking initiatives to support local vendors, putting further pressure on Varex Imaging Corporation (NASDAQ:VREX)'s sales. However, due to the company's competitive position and new contracts, S&P has extended a stable rating outlook. While we acknowledge the potential of VREX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than VREX and that has 100x upside potential, check out our report about the READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure. None.
