Overview

* Varex fiscal Q3 revenue of $203 mln beats analyst expectations, per LSEG data

* GAAP net loss of $2.15 per share

* Non-GAAP EPS rises to $0.18

Outlook

* Company expects Q4 revenue between $210 mln and $230 mln

* Varex anticipates non-GAAP EPS of $0.10-$0.30 for Q4

* Company forecasts 3% sales growth for fiscal year 2025

Result Drivers

* INDUSTRIAL SEGMENT - Strong performance with a 1% revenue increase year-over-year, per CEO Sunny Sanyal

* CHINA MEDICAL REVENUE - Better-than-expected performance in China contributed to Medical segment revenue

* CARGO INSPECTION - Continued adoption of systems in cargo inspection applications supported results, per CEO Sunny Sanyal

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $203 mln $190.30

Revenue mln (5

Analysts

)

Q3 Net -$89.10

Income mln

Q3 Gross 33.0%

Margin

Q3 -$80.70

Operatin mln

g Income

Q3 -$86.60

Pretax mln

Profit

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 ( VREX ) is $16.00, about 56% above its August 6 closing price of $7.04

* The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)