Varex Imaging's Q1 revenue up 5%, slightly beats estimates

Overview

• X-ray imaging components maker's Q1 revenue rose 5% yr/yr, slightly beating analysts' expectations

• Non-GAAP EPS increased to $0.19 from $0.10 in the prior year

• Growth driven by 17% increase in Industrial segment revenue, led by cargo systems

Outlook

• Company expects Q2 FY26 revenue between $210 mln and $225 mln

• Varex anticipates strong demand for CT products and cargo security systems

• Company forecasts Q2 FY26 non-GAAP EPS between $0.15 and $0.25

Result Drivers

• CARGO SYSTEMS - Growth in the quarter was driven by strength in cargo systems business, contributing to a 17% year-over-year increase in Industrial segment revenue, said CEO Sunny Sanyal

• INVENTORY IMPACT - Cash outflow from operations was driven by an increase in working capital, primarily due to inventory

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the advanced medical equipment & technology peer group is "buy"

• Wall Street's median 12-month price target for Varex Imaging Corp is $18.00, about 28.2% above its February 9 closing price of $14.04

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nBwbC47Lfa

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