Varex Imaging Corp Q3 FY2025 Earnings: Revenue Surpasses Estimates at $203M, Non-GAAP EPS at $0.18, Medical Segment Revenue Down 4% YoY

Varex Imaging Corp reported Q3 FY2025 revenue of $203M, surpassing estimates, but declining 3% YoY. The Medical segment saw a 4% decrease, while the Industrial segment increased 1%. The company achieved a non-GAAP gross margin of 34%, up from 32% last year, and a non-GAAP net earnings per diluted share of $0.18, surpassing the analyst estimate of -$0.12. However, the company reported a GAAP net loss of $2.15 per diluted share due to a $93.9M impairment of goodwill.

Varex Imaging Corp (VREX) has released its unaudited financial results for the third quarter of fiscal year 2025, reporting a revenue of $203 million, which surpassed analyst estimates of $190.32 million. However, this figure represents a 3% decline year-over-year (YoY) from the same quarter last year [1].

The company's Medical segment saw a 4% decrease in revenue to $142 million, while the Industrial segment experienced a slight increase of 1% to $61 million. Despite the overall revenue decline, the company's performance is noteworthy as it surpassed the high-end of its guidance, driven by strong performance in the Industrial segment and better-than-expected Medical revenue in China [2].

Varex Imaging Corp achieved a non-GAAP gross margin of 34%, up from 32% in the same quarter last year. The non-GAAP net earnings per diluted share increased to $0.18, surpassing the analyst estimate of -$0.12. These achievements are significant for a company in the Medical Devices & Instruments industry, as they reflect operational efficiency and the ability to maintain profitability despite revenue challenges [1].

However, the company reported a GAAP net loss of $2.15 per diluted share, primarily due to a $93.9 million impairment of goodwill. Cash flow from operations was $8 million, and cash, cash equivalents, and marketable securities totaled $153 million at the end of the quarter, down from $226 million in the previous quarter. This decrease was mainly due to the repayment of Convertible Notes [1].

Looking ahead, Varex Imaging Corp expects revenues between $210 million and $230 million for the fourth quarter of fiscal year 2025, with non-GAAP net earnings per diluted share projected to be between $0.10 and $0.30. This guidance reflects the company's anticipation of continued demand in both the Medical and Industrial segments [1].

References:
[1] https://www.gurufocus.com/news/3046889/varex-imaging-corp-q3-fy2025-earnings-revenue-surpasses-estimates-at-203m-nongaap-eps-at-018
[2] https://www.tradingview.com/news/tradingview:abbb1226f5fe3:0-varex-imaging-corporation-announces-q3-fy2025-financial-results/