Varex Imaging (VREX, Financial) has successfully secured substantial international orders totaling around $17 million for its advanced high-energy, non-intrusive inspection systems. These systems are designed to enhance security at key sea and land port locations, ensuring efficient cargo and vehicle screening processes. This development underscores Varex Imaging's growing influence in the global security solutions market.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Varex Imaging Corp (VREX, Financial) is $16.60 with a high estimate of $23.00 and a low estimate of $10.00. The average target implies an upside of 103.18% from the current price of $8.17. More detailed estimate data can be found on the Varex Imaging Corp (VREX) Forecast page.
Based on the consensus recommendation from 5 brokerage firms, Varex Imaging Corp's (VREX, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Varex Imaging Corp (VREX, Financial) in one year is $14.17, suggesting a upside of 73.44% from the current price of $8.17. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Varex Imaging Corp (VREX) Summary page.
VREX Key Business Developments
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Varex Imaging Corp (VREX, Financial) reported strong demand in both medical and industrial segments, resulting in revenue near the high end of expectations.
- Gross margin improved to 36%, up from 33% in the same quarter last year, driven by improved volume, favorable product sales mix, and productivity gains.
- Cash generation was robust, with $17 million from operations, reflecting improved profitability and solid working capital management.
- The company ended the quarter with $226 million in cash equivalents and marketable securities, an increase of $36 million year over year.
- Varex Imaging Corp (VREX) secured a new $25 million order for cargo inspection systems, indicating strong demand in the industrial segment.
Negative Points
- The company faces a potential $20 million sales impact in the third quarter due to tariffs imposed by China on US products.
- Tariffs on raw materials and components sourced globally range from 10% to 145%, impacting cost of goods sold.
- The ongoing tariff situation with China has led to a pause in purchases by some China-based customers, affecting sales.
- The company anticipates a 150 to 200 basis point impact on gross margins due to tariffs, despite mitigation efforts.
- Varex Imaging Corp (VREX) is facing investigations by the China Ministry of Commerce regarding the impact of imports on the domestic industry and alleged dumping of products.
