Varex Imaging Plunges 12.77% on Mixed Earnings, Regulatory Scrutiny

On April 10, 2025, Varex Imaging's stock experienced a significant drop of 12.77% in pre-market trading, reflecting a notable decline in investor sentiment.

Varex Imaging's recent financial performance has been a key factor influencing its stock price. The company reported a Non-GAAP EPS of $0.07 for the first quarter of fiscal year 2025, which exceeded expectations by $0.03. However, the revenue of $199.8 million fell short of projections by $2.35 million. This mixed performance has led to a decline in investor confidence, contributing to the recent stock price drop.

Additionally, the company has been facing regulatory challenges. China has launched probes into US and India-made CT X-ray tubes, which could impact Varex Imaging's operations and financial outlook. This regulatory scrutiny has added to the uncertainty surrounding the company's future prospects, further weighing on its stock price.

Despite these challenges, Varex Imaging has secured significant orders for its cargo inspection systems. The company announced $14 million in orders for these systems, driven by rising industrial demand. This positive development could provide a boost to the company's revenue and profitability in the coming quarters, potentially stabilizing its stock price in the long term.