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In a challenging market environment, Varex Imaging (NASDAQ:VREX) Corp's stock (NASDAQ: VREX) has recorded a new 52-week low, dipping to $10.72. This latest price level reflects a significant downturn for the company, which specializes in X-ray imaging components. Over the past year, Varex has seen its stock value decrease by a substantial 39.5%, indicating a period of bearish sentiment among investors and potential concerns over the company's performance and future prospects in its sector. The 52-week low serves as a critical indicator for shareholders and potential investors, marking the lowest price point for VREX stock within the last year and setting a benchmark for its near-term trajectory.
In other recent news, Varex Imaging Corporation reported mixed third-quarter financial results for fiscal year 2024. The company's revenue declined by 10% compared to the same period last year, with the Medical segment experiencing a significant 15% decrease. Conversely, the Industrial segment reported a 6% increase in revenue. Despite challenges in the Chinese market and increased competition, Varex ended the quarter with a strong cash position of $192 million.
B.Riley initiated coverage on Varex Imaging with a Buy rating and a price target of $21.00, citing the company's potential for growth as headwinds turn to tailwinds by 2025. The firm emphasized Varex's expertise in creating highly complex components as a competitive advantage.
Looking ahead, Varex anticipates gradual improvements in fiscal year 2025, with optimism for its cost-cutting initiatives and investments in India. The company is also considering refinancing options for convertible bonds maturing in June 2025. These are among the recent developments for Varex as it navigates current challenges and seeks to capitalize on future growth opportunities.
InvestingPro Insights
As Varex Imaging Corp (NASDAQ: VREX) navigates through a tough market, the company's recent 52-week low may draw investors' attention to its valuation and performance metrics. According to InvestingPro, Varex's valuation implies a strong free cash flow yield, which could be a silver lining for value-oriented investors. Additionally, despite trading at a high P/E ratio relative to near-term earnings growth, the company is still expected to remain profitable this year, a reassuring sign for those concerned with bottom-line results.
InvestingPro Data highlights a market capitalization of $449.06 million, a P/E ratio of 13.82, and a price/book ratio as of the last twelve months ending Q3 2024 at 0.78, suggesting that the stock may be undervalued relative to its assets. Moreover, with a gross profit margin of 32.16%, Varex has maintained a solid profitability in its operations despite a revenue decline of 7.21% over the same period.
For investors looking for more comprehensive analysis and additional InvestingPro Tips, there are 8 more tips available on the InvestingPro platform that could provide further insights into Varex's financial health and investment potential.
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