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Investing.com -- Varex Imaging Corporation (NASDAQ:VREX) reported fourth quarter earnings that significantly exceeded analyst expectations, driven by strong performance in both its Medical and Industrial segments. The company’s shares rose around 2% in after-hours trading Tuesday following the announcement.
The medical imaging technology provider posted adjusted earnings of $0.37 per share for the fourth quarter, substantially beating the analyst estimate of $0.17. Revenue reached $229 million, surpassing the consensus estimate of $219.26 million and representing an 11% increase YoY.
"Fourth quarter revenue reached $229 million, up 11% year-over-year and at the high-end of our expectations," said Sunny Sanyal, Chief Executive Officer. "This strong finish to the fiscal year was driven primarily by global CT tube sales in our Medical segment, while sustained momentum in our cargo systems business drove a 25% increase in Industrial segment sales compared to last year."
The company’s Medical segment revenue grew 5% YoY to $152 million, while Industrial segment revenue jumped 25% YoY to $77 million. Non-GAAP gross margin improved to 34% in the quarter compared to 33% in the same period last year.
For fiscal year 2025, Varex reported total revenue of $845 million, up 4% YoY, with non-GAAP earnings per share of $0.90, representing a 73% increase from the previous year.
Looking ahead, Varex provided first quarter fiscal 2026 guidance with revenue expected between $200 million and $215 million, compared to the analyst consensus of $206 million. The company forecasts adjusted earnings between $0.05 and $0.25 per share for the quarter, with the midpoint of $0.15 slightly above the consensus estimate of $0.14.
Cash flow from operations was $8 million in the fourth quarter, with cash and equivalents totaling $155 million at the end of fiscal 2025, down from $213 million a year earlier primarily due to the repayment of convertible notes.
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