Overview

* Varex Q4 revenue grows 11% yr/yr, beating analyst expectations

* Non-GAAP EPS for Q4 rises to $0.37 from $0.19 last year

* Company's revenue growth driven by Medical and Industrial segments

Outlook

* Company expects Q1FY26 revenue between $200 mln and $215 mln

* Company anticipates Q1FY26 non-GAAP EPS between $0.05 and $0.25

Result Drivers

* MEDICAL SEGMENT - Global CT tube sales drove a 5% increase in Medical segment revenue

* INDUSTRIAL SEGMENT - Sustained momentum in cargo systems business led to 25% growth in Industrial segment

* GROWTH INITIATIVES - Co advanced photon counting technology for CT and launched radiographic detector from new facility in India

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q4 Beat $229 mln $219.26

Revenue mln (5

Analysts

)

Q4 Net $12.20

Income mln

Q4 Gross 34.00%

Margin

Q4 10.00%

Adjusted

Operatin

g Margin

Q4 $19.60

Operatin mln

g Income

Q4 $14.10

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 28.6% above its November 17 closing price of $11.43

* The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release:

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(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.)