Varex Imaging (NASDAQ:VREX) Sets New 52-Week High on Strong Earnings

Varex Imaging (NASDAQ:VREX)’s share price hit a new 52-week high on Monday following a better than expected earnings announcement. The company traded as high as $18.41 and last traded at $18.3850, with a volume of 1318309 shares changing hands. The stock had previously closed at $12.41.

The company reported $0.31 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.21 by $0.10. Varex Imaging had a negative net margin of 9.64% and a positive return on equity of 8.19%. The company had revenue of $210.50 million during the quarter, compared to the consensus estimate of $215.50 million.

Varex Imaging News Roundup

Here are the key news stories impacting Varex Imaging this week:

• Positive Sentiment: Teledyne takeover provides a significant valuation catalyst. Teledyne will pay $18.90 per Varex share, subject to customary closing conditions and approvals. The offer represents a substantial premium to Varex’s recent trading level, giving investors a clearly defined cash exit value. Teledyne to acquire Varex Imaging in $1.1 billion deal
• Positive Sentiment: Varex delivered an earnings beat on profit. Quarterly earnings per share exceeded the analyst consensus estimate of $0.21, with the company reporting $15.7 million of attributable net income and $21 million in operating cash flow. Varex Imaging earnings results
• Neutral Sentiment: Revenue growth remained modest but positive. Fiscal third-quarter revenue was $210.5 million, up 4% year over year, including $134.0 million from Medical and $76.5 million from Industrial. The company also reported a 36.4% GAAP gross margin and $99 million in cash, cash equivalents and marketable securities. Varex Announces Financial Results for Third Quarter Fiscal Year 2026
• Negative Sentiment: Revenue fell short of expectations and the company withdrew normal investor communication. Revenue missed the approximately $215.5 million consensus estimate. Varex canceled its earnings conference call and will not provide financial guidance because of the Teledyne transaction, reducing visibility into standalone operating prospects. The quarter also included a $7 million reduction to revenue for expected customer reimbursements, partly offset by a $17 million U.S. Customs tariff refund.

Analyst Ratings Changes

VREX has been the subject of several analyst reports. Weiss Ratings reissued a “sell (d-)” rating on shares of Varex Imaging in a report on Wednesday, June 24th. Zacks Research cut Varex Imaging from a “strong-buy” rating to a “hold” rating in a research report on Monday, July 27th. Sidoti reissued a “neutral” rating and issued a $19.00 price target on shares of Varex Imaging in a report on Monday. Finally, Wall Street Zen upgraded Varex Imaging from a “hold” rating to a “buy” rating in a research report on Saturday, July 4th. Two analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $16.88.

Institutional Investors Weigh In On Varex Imaging

Several institutional investors and hedge funds have recently added to or reduced their stakes in VREX. Universal Beteiligungs und Servicegesellschaft mbH acquired a new stake in shares of Varex Imaging in the fourth quarter valued at approximately $1,247,000. LSV Asset Management lifted its position in Varex Imaging by 210.7% during the fourth quarter. LSV Asset Management now owns 1,244,329 shares of the company’s stock worth $14,496,000 after buying an additional 843,805 shares in the last quarter. Rice Hall James & Associates LLC boosted its stake in Varex Imaging by 19.1% during the fourth quarter. Rice Hall James & Associates LLC now owns 1,082,964 shares of the company’s stock worth $12,617,000 after buying an additional 173,703 shares during the last quarter. Sei Investments Co. boosted its stake in Varex Imaging by 72.5% during the first quarter. Sei Investments Co. now owns 411,655 shares of the company’s stock worth $4,368,000 after buying an additional 173,041 shares during the last quarter. Finally, Legato Capital Management LLC grew its holdings in Varex Imaging by 889.9% in the 4th quarter. Legato Capital Management LLC now owns 99,810 shares of the company’s stock valued at $1,163,000 after buying an additional 89,727 shares in the last quarter.

Varex Imaging Trading Up 48.1%

The company has a market capitalization of $774.01 million, a PE ratio of -9.19 and a beta of 0.89. The company has a fifty day simple moving average of $10.77 and a 200-day simple moving average of $11.51. The company has a current ratio of 3.20, a quick ratio of 1.43 and a debt-to-equity ratio of 0.67.

Varex Imaging Company Profile

Varex Imaging Corporation is a global provider of X-ray imaging components and solutions for the medical, security and industrial markets. The company designs, develops and manufactures a broad range of products that convert X-ray energy into high-resolution digital images. Its portfolio includes X-ray tubes, flat panel detectors, digital sensors, specialty radiographic tubes and related software, all engineered to meet the demanding requirements of original equipment manufacturers (OEMs) in diagnostic imaging, computed tomography (CT), fluoroscopy, mammography, dental radiography and non-destructive testing applications.

The company’s medical imaging offerings support a wide spectrum of clinical modalities, from portable radiography systems to advanced CT scanners, enhancing image quality and dose efficiency for healthcare providers.