Varex Imaging (NASDAQ:VREX) Sees Strong Trading Volume After Strong Earnings

Key Points

• Teledyne agreed to acquire Varex Imaging in an all-cash transaction valued at approximately $1.1 billion, or $18.90 per share, making the offer the primary catalyst for the stock’s move toward that price.
• Varex reported better-than-expected quarterly earnings, with non-GAAP EPS of $0.31 versus the $0.21 consensus estimate. Revenue rose 4% year over year to $210.5 million but fell slightly short of analysts’ $215.5 million forecast.
• Investors face transaction and operating uncertainty because Varex withdrew its financial guidance and canceled its earnings call while the deal is pending; analysts remain cautious, with a consensus “Reduce” rating and $16.88 price target.

Shares of Varex Imaging (NASDAQ:VREX - Get Free Report) saw strong trading volume on Tuesday after the company announced better than expected quarterly earnings. Approximately 420,561 shares traded hands during trading, a decline of 8% from the previous session's volume of 457,951 shares.The stock last traded at $18.4850 and had previously closed at $18.46.

The company reported $0.31 EPS for the quarter, beating analysts' consensus estimates of $0.21 by $0.10. Varex Imaging had a positive return on equity of 8.19% and a negative net margin of 9.64%.The business had revenue of $210.50 million during the quarter, compared to analyst estimates of $215.50 million.

Varex Imaging News Summary

Here are the key news stories impacting Varex Imaging this week:

• Positive Sentiment: Teledyne buyout provides a clear valuation: Teledyne will acquire Varex in an all-cash transaction valued at approximately $1.1 billion, or $18.90 per share. The deal, approved by both companies’ boards, is the primary catalyst behind the stock’s advance and places a firm ceiling near the offer price, subject to closing conditions. Teledyne to acquire Varex Imaging in $1.1 billion deal
• Positive Sentiment: Quarterly earnings exceeded expectations: Varex reported fiscal Q3 revenue of $210.5 million, up 4% year over year, and non-GAAP EPS of $0.31 versus $0.13 a year earlier and analysts’ expectations near $0.21-$0.22. GAAP net income was $15.7 million, while operating cash flow reached $21 million. Varex Announces Financial Results for Third Quarter Fiscal Year 2026
• Neutral Sentiment: Shares reached a new 52-week high: Trading volume increased substantially as investors repriced VREX toward Teledyne’s cash offer. Sidoti reaffirmed a neutral rating but raised its price target to $19, close to the proposed acquisition price. Varex Imaging Sets New 1-Year High After Strong Earnings
• Negative Sentiment: Risks remain around the transaction and operating outlook: Revenue came in slightly below the roughly $215.5 million consensus estimate. Varex canceled its earnings call and withdrew financial guidance while the acquisition is pending. In addition, a law firm is investigating whether shareholders are receiving a fair price, potentially adding deal uncertainty, although no challenge to the transaction has been announced. VREX Stock Alert: Halper Sadeh LLC Investigation

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on VREX shares. B. Riley Financial downgraded Varex Imaging from a "buy" rating to a "hold" rating in a report on Monday. Wall Street Zen raised shares of Varex Imaging from a "hold" rating to a "buy" rating in a research report on Saturday, July 4th. Zacks Research cut Varex Imaging from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 27th. Sidoti reaffirmed a "neutral" rating and issued a $19.00 price objective on shares of Varex Imaging in a research report on Monday. Finally, Oppenheimer downgraded Varex Imaging from an "outperform" rating to a "market perform" rating in a research note on Monday. Five analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Varex Imaging currently has a consensus rating of "Reduce" and a consensus price target of $16.88.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in VREX. Rockefeller Capital Management L.P. bought a new position in shares of Varex Imaging during the 4th quarter valued at approximately $27,000. Quarry LP bought a new stake in Varex Imaging during the 3rd quarter worth approximately $64,000. BNP Paribas Financial Markets lifted its holdings in Varex Imaging by 18.5% during the second quarter. BNP Paribas Financial Markets now owns 13,045 shares of the company's stock valued at $113,000 after purchasing an additional 2,036 shares in the last quarter. Aquatic Capital Management LLC purchased a new position in Varex Imaging during the third quarter valued at approximately $117,000. Finally, Cerity Partners LLC bought a new position in shares of Varex Imaging in the second quarter worth approximately $123,000.

Varex Imaging Trading Up 0.1%

The stock's 50-day simple moving average is $10.93 and its two-hundred day simple moving average is $11.55. The company has a debt-to-equity ratio of 0.67, a current ratio of 3.20 and a quick ratio of 1.43. The firm has a market capitalization of $778.22 million, a P/E ratio of -9.24 and a beta of 0.89.

About Varex Imaging

Varex Imaging Corporation is a global provider of X-ray imaging components and solutions for the medical, security and industrial markets. The company designs, develops and manufactures a broad range of products that convert X-ray energy into high-resolution digital images. Its portfolio includes X-ray tubes, flat panel detectors, digital sensors, specialty radiographic tubes and related software, all engineered to meet the demanding requirements of original equipment manufacturers (OEMs) in diagnostic imaging, computed tomography (CT), fluoroscopy, mammography, dental radiography and non-destructive testing applications.

The company's medical imaging offerings support a wide spectrum of clinical modalities, from portable radiography systems to advanced CT scanners, enhancing image quality and dose efficiency for healthcare providers.

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