Varex Imaging (NASDAQ:VREX) Sees Large Volume Increase After Better-Than-Expected Earnings

Shares of Varex Imaging (NASDAQ:VREX) saw strong trading volume on Tuesday following a stronger than expected earnings report. 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 earnings per share for the quarter, topping 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 firm had revenue of $210.50 million during the quarter, compared to analyst estimates of $215.50 million.

More Varex Imaging News

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

Analysts Set New Price Targets

A number of brokerages have issued reports on VREX. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Varex Imaging in a report on Wednesday, June 24th. Zacks Research downgraded shares of Varex Imaging from a “strong-buy” rating to a “hold” rating in a report on Monday, July 27th. Wall Street Zen upgraded shares of Varex Imaging from a “hold” rating to a “buy” rating in a research report on Saturday, July 4th. Sidoti reaffirmed a “neutral” rating and set a $19.00 target price on shares of Varex Imaging in a research note on Monday. Finally, Oppenheimer downgraded shares of Varex Imaging from an “outperform” rating to a “market perform” rating in a report on Monday. Five equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Varex Imaging presently has a consensus rating of “Reduce” and an average price target of $16.88.

Institutional Investors Weigh In On Varex Imaging

A number of hedge funds have recently bought and sold shares of VREX. Pzena Investment Management LLC bought a new stake in shares of Varex Imaging in the 2nd quarter worth about $45,312,000. BlackRock Inc. bought a new position in shares of Varex Imaging in the 2nd quarter valued at about $40,624,000. Deutsche Bank AG bought a new position in shares of Varex Imaging in the 2nd quarter valued at about $432,000. Rice Hall James & Associates LLC purchased a new position in Varex Imaging in the second quarter worth about $15,080,000. Finally, Bank of New York Mellon Corp purchased a new position in Varex Imaging in the second quarter worth about $1,671,000.

Varex Imaging Stock Up 0.1%

The company has a 50 day simple moving average of $10.93 and a two-hundred day simple moving average of $11.55. The company has a quick ratio of 1.43, a current ratio of 3.20 and a debt-to-equity ratio of 0.67. The company 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.