Varex Imaging slides on Q3 miss

Shares in Varex Imaging (NSDQ:VREX) fell today after the medical device maker missed expectations on Wall Street with its 3rd quarter earnings results.

The Salt Lake City, Utah-based company posted profits of $10.6 million, or 28¢ per share, on sales of $170.1 million for the 3 months ended June 30, seeing its bottom-line shrink 39.8% while sales grew 12.4% compared with the same period last year.

Adjusted to exclude 1-time items, earnings per share were 44¢, just below the 46¢ consensus on Wall Street, where analysts were looking for sales of $179 million.

 

“The 3rd quarter of last year saw strong year-over-year revenue growth as our business started to recover from an earlier downturn. While organic revenues declined in the third quarter of this year, for the trailing four quarters they were up 3%. Including revenues from the acquired imaging business, revenues for the trailing four quarters were up 8%. In our Medical segment, we have seen strong year-to-date growth in the mammography and dental markets and stability in the CT, radiographic and fluoroscopic markets. However, we have seen declines in our non-OEM aftermarket X-ray tube sales to third-party service organizations. In the Industrial segment, growth in the security market contributed to increased revenues during the quarter,” CEO Sunny Sanyal said in a press release.

Varex Imaging said it expects to see revenues grow by 23% to 26% in the next quarter, including revenues from the imaging business it acquired from PerkinElmer Inc. (NYSE:PKI) earlier this year, with adjusted EPS of between 50¢ and 54¢ per diluted share.

For the full fiscal year, Varex said it expects to see revenues growth approximately 12% to 13%, with adjusted EPS between $1.73 and $1.77 per diluted share.

Shares in Varex Imaging have fallen 7.3% so far today, at $28.31 as of 3:02 p.m. EDT.

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