Latest news with #VarexImaging
Yahoo
2 days ago
- 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
Globe and Mail
4 days ago
- Business
- Globe and Mail
Strategic Growth in the Global X-Ray Detectors Market (2025-2030)
"Originally a part of Varian Imaging, Varex Imaging Corporation has expanded to become a world leader in producing and selling medical imaging devices, catering to industries like cargo screening and border security." key players operating in the global X-ray detectors market are Varex Imaging (US), Canon (Japan), Thales Group (France), Analogic Corporation (US), Agfa-Gevaert Group (Belgium), Carestream Health (US) The global X-ray detectors market is on a trajectory of sustained growth, projected to expand from US$3.4 billion in 2025 to US$4.4 billion by 2030, advancing at a CAGR of 5.5%. As digital transformation accelerates across healthcare, defense, and industrial sectors, X-ray detector technologies have become a key enabler of high-stakes decision-making, operational efficiency, and national security. For C-level executives and senior decision-makers, this evolution represents more than a technological upgrade—it's a strategic opportunity for ROI, innovation, and competitive advantage. Download PDF Brochure: Healthcare, Defense, and Beyond: Why the X-Ray Detectors Market Is Booming X-ray detectors are no longer limited to diagnostic imaging in hospitals. They are transforming border security, aerospace inspections, homeland defense, and precision medicine, thanks to major advances in flat-panel technologies, backscatter X-rays, and photon-counting detectors. Here's why this market matters for enterprise leaders: Security and Defense Digitization: Airports, seaports, and critical checkpoints are integrating advanced X-ray imaging to combat emerging threats. High-resolution, real-time detection of concealed weapons, explosives, and contraband is now critical for national and global security. Medical Imaging Modernization: As healthcare systems digitize globally, the shift from analog to flat-panel digital radiography ensures higher throughput, faster diagnostics, and improved patient safety—delivering both clinical value and operational cost savings. Industrial Inspection & Automation: Rugged and handheld detectors are increasingly used for non-destructive testing (NDT) in aerospace, oil & gas, and manufacturing—ensuring safety, compliance, and uptime in mission-critical systems. Market Leaders & Strategic Differentiators Varex Imaging (US): Diversification and Deep Sector Expertise Varex Imaging exemplifies the market's transition from traditional radiology to multisector innovation. With strong capabilities across medical, industrial, and security imaging, Varex's inorganic growth strategy—driven by acquisitions and global expansion—makes it a versatile partner for OEMs and system integrators. Their investment in AI-enabled imaging and advanced detector materials positions them as a formidable player in custom and scalable detector design. Thales Group (France): Security and Medical Fusion Through its Trixell division, Thales provides state-of-the-art flat-panel detectors for OEMs across radiography, fluoroscopy, and cardiovascular applications. The company's legacy in defense and secure communications complements its healthcare imaging operations—making it uniquely positioned to lead in dual-use imaging systems for civilian and military applications. Canon Inc. (Japan): Ecosystem Strength in Healthcare Canon leverages its expansive global network and R&D capabilities across digital radiography, CT, and MRI systems. The firm's seamless integration of X-ray detectors within a broader portfolio of diagnostic tools enables healthcare institutions to modernize imaging infrastructure holistically—reducing downtime, radiation exposure, and diagnostic uncertainty. Request Sample Pages : Technology Spotlight: Flat-Panel Detectors Drive Value Flat-panel detectors (FPDs), particularly those using cesium iodide (CsI), dominate the technology landscape due to: Superior Image Resolution: Ideal for early detection of chronic conditions like cancer or cardiovascular disease. Reduced Radiation Dosage: Enhances patient safety and supports regulatory compliance. Faster Image Acquisition: Improves clinical workflow and diagnostic throughput. With hospitals and imaging centers under pressure to improve diagnostic accuracy while managing costs, FPDs represent a high-ROI investment with proven clinical and operational benefits. Geographic Growth Hotspots: Strategic Markets to Watch North America remains the most mature market, driven by advanced infrastructure, strong reimbursement systems, and early adoption of AI-enhanced imaging. Asia Pacific is rapidly expanding due to increased healthcare spending, government initiatives in rural diagnostics, and a rising middle class demanding high-quality imaging. Europe continues to innovate through public-private partnerships, particularly in preventive care and cancer diagnostics. Global players are expected to deepen regional partnerships and invest in localized production to navigate shifting trade regulations and accelerate time to market. Investment Outlook: ROI and Strategic Benefits For C-suite leaders, the X-ray detectors market offers: Long-term ROI: Upgrading to advanced detectors can result in 10–20% operational efficiency gains, reduced maintenance costs, and improved service turnaround times. Innovation Advantage: Early investment in photon-counting or AI-integrated detectors can differentiate offerings in competitive bids or tenders. Sustainability Impact: Digital detectors reduce chemical waste (vs. film-based systems), support greener operations, and align with ESG mandates. Future Outlook: AI, Photon Counting, and Space Applications Looking forward, the X-ray detector market is being reshaped by: Photon-Counting Detectors: Emerging as a disruptive force with unparalleled resolution and low-dose imaging for precision diagnostics. AI & Predictive Imaging: Integration with artificial intelligence enhances image interpretation, triage, and workflow automation—enabling faster, more accurate decisions. Space & Deep Tech Applications: X-ray systems are being explored for use in satellite inspections, asteroid mining, and extraterrestrial exploration, unlocking new industrial frontiers. Key Takeaways for Decision-Makers Strategic Priority Value Proposition Modernize Imaging Infrastructure Enhance speed, accuracy, and ROI Align with National Security Demands Adopt advanced X-ray tech for defense & border safety Leverage ESG & Sustainability Transition to greener, digital imaging systems Capitalize on Global Expansion Target high-growth regions and partner with OEMs Invest in R&D and Innovation Future-proof your portfolio through emerging tech Ready to Lead the Next Wave of Imaging Innovation? The X-ray detectors market presents an intersection of innovation, resilience, and growth. Enterprises that invest now in next-generation detector technologies will be better equipped to meet rising demand, navigate regulatory shifts, and deliver exceptional value to customers. For more information, Inquire Now!
Globe and Mail
22-07-2025
- Business
- Globe and Mail
Varex Schedules Third Quarter Fiscal Year 2025 Earnings Release and Conference Call
Varex Imaging Corporation (Nasdaq: VREX) today announced that it will report unaudited financial results for the third quarter of fiscal year 2025, following the close of regular trading on Thursday, August 7, 2025. The earnings news release will be followed by a conference call at 3:00 pm Mountain Time that day. This call will be webcast live and can be accessed at the company's website at Investors can also access this conference call at 877-524-8416 from anywhere in the U.S. or 412-902-1028 from non-U.S. locations. The webcast of this call will be archived on the company's website and a replay of the call will be available from August 7th through August 21st at 877-660-6853 from anywhere in the U.S. or 201-612-7415 from non-U.S. locations. The replay conference call access code is 13754994. The listen-only webcast link is: About Varex Varex Imaging Corporation is a leading innovator, designer and manufacturer of X-ray imaging components, which include X-ray tubes, digital detectors and other image processing solutions that are key components of X-ray imaging systems, as well as X-ray imaging systems for industrial applications. With a 70+ year history of successful innovation, Varex's products are used in medical imaging as well as in industrial and security imaging applications. Global OEM manufacturers incorporate the company's X-ray sources, digital detectors, connecting devices and imaging software in their systems to detect, diagnose, protect and inspect. Headquartered in Salt Lake City, Utah, Varex employs approximately 2,300 people located in North America, Europe, and Asia. For more information visit
Yahoo
31-05-2025
- Business
- Yahoo
Calculating The Fair Value Of Varex Imaging Corporation (NASDAQ:VREX)
Using the 2 Stage Free Cash Flow to Equity, Varex Imaging fair value estimate is US$8.11 Varex Imaging's US$7.67 share price indicates it is trading at similar levels as its fair value estimate The US$16.60 analyst price target for VREX is 105% more than our estimate of fair value How far off is Varex Imaging Corporation (NASDAQ:VREX) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the forecast future cash flows of the company and discounting them back to today's value. We will use the Discounted Cash Flow (DCF) model on this occasion. Believe it or not, it's not too difficult to follow, as you'll see from our example! We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF ($, Millions) US$24.9m US$46.8m US$39.5m US$35.5m US$33.3m US$32.1m US$31.6m US$31.6m US$31.8m US$32.3m Growth Rate Estimate Source Analyst x1 Analyst x1 Est @ -15.68% Est @ -10.10% Est @ -6.19% Est @ -3.45% Est @ -1.53% Est @ -0.19% Est @ 0.75% Est @ 1.41% Present Value ($, Millions) Discounted @ 11% US$22.4 US$37.8 US$28.6 US$23.1 US$19.5 US$16.9 US$15.0 US$13.4 US$12.2 US$11.1 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$200m The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.9%. We discount the terminal cash flows to today's value at a cost of equity of 11%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = US$32m× (1 + 2.9%) ÷ (11%– 2.9%) = US$398m Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$398m÷ ( 1 + 11%)10= US$137m The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is US$337m. In the final step we divide the equity value by the number of shares outstanding. Compared to the current share price of US$7.7, the company appears about fair value at a 5.5% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Varex Imaging as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 11%, which is based on a levered beta of 1.925. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. View our latest analysis for Varex Imaging Strength No major strengths identified for VREX. Weakness Interest payments on debt are not well covered. Opportunity Expected to breakeven next year. Has sufficient cash runway for more than 3 years based on current free cash flows. Good value based on P/S ratio and estimated fair value. Threat Debt is not well covered by operating cash flow. Although the valuation of a company is important, it shouldn't be the only metric you look at when researching a company. It's not possible to obtain a foolproof valuation with a DCF model. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. For Varex Imaging, we've compiled three important items you should consider: Risks: Every company has them, and we've spotted 2 warning signs for Varex Imaging (of which 1 is potentially serious!) you should know about. Future Earnings: How does VREX's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. Simply Wall St updates its DCF calculation for every American stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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.
