Varex Imaging Corporation (VREX) Tops Q1 EPS by 11c, Revenues Beat; Offers 2Q EPS/Revenue Guidance Above Consensus

Varex Imaging Corporation (NASDAQ: VREX) reported Q1 EPS of $0.08, $0.11 better than the analyst estimate of ($0.03). Revenue for the quarter came in at $177.1 million versus the consensus estimate of $172.1 million.

1QFY21 Summary

• Revenues $177 million
• GAAP gross margin 32% | Non-GAAP gross margin* 34%
• GAAP operating expense $51 million | Non-GAAP operating expense* $46 million
• GAAP operating margin 3% | Non-GAAP operating margin* 8%
• GAAP net earnings $(0.16) per diluted share | Non-GAAP net earnings* $0.08 per diluted share

“Our financial results for the first quarter of fiscal year 2021 were stronger than our expectations,” said Sunny Sanyal, Chief Executive Officer of Varex.

“Revenues increased 4% sequentially over the fourth quarter of fiscal year 2020, indicating the start of recovery in our business. Non-GAAP gross margin improved significantly to 34% and was sequentially higher by 580 basis points due primarily to the benefits from cost reductions, as well as a favorable shift in product mix in the medical segment. Non-GAAP operating expenses declined by about $3 million sequentially, reflecting our continued focus on profitability.” Sanyal added.

GUIDANCE:

Varex Imaging Corporation sees Q2 2021 EPS of $0.05-$0.25, versus the consensus of $0.04. Varex Imaging Corporation sees Q2 2021 revenue of $180-200 million, versus the consensus of $178.44 million.

The following guidance is provided for the second quarter of fiscal year 2021:

• Revenues are expected to be between $180 million and $200 million
• Non-GAAP earnings per diluted share is expected to be between $0.05 and $0.25

Guidance for the company's net earnings per diluted share is provided on a non-GAAP basis only. This non-GAAP financial measure is forward-looking, and the company is unable to provide a meaningful or accurate GAAP forecast of net earnings per diluted share without unreasonable effort due to the uncertainty of amounts and timing of unusual items, such as restructuring costs.

For earnings history and earnings-related data on Varex Imaging Corporation (VREX) click here.

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