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Varex Imaging Corp (NASDAQ:VREX), a manufacturer of medical CT X-ray tubes with a market capitalization of $344 million, disclosed today that the China Ministry of Commerce (MOFCOM) has initiated an anti-dumping investigation into imports of certain medical CT X-ray tubes originating from the United States and India. The company, which is based in Salt Lake City, Utah, confirmed that while it has not received formal notice from MOFCOM, it is aware of the investigation. According to InvestingPro data, the company has seen its stock decline over 42% in the past year, with recent trading activity suggesting oversold conditions.
The company produces its medical CT X-ray tubes and inserts in the United States and exports them to China. Varex does not have manufacturing facilities for these products in India. In its statement, Varex affirmed its belief that it complies with applicable competition laws and indicated that it intends to cooperate with any such investigation, should formal notice be received. The company maintains strong liquidity with a current ratio of 4.36, indicating its ability to meet short-term obligations, as revealed in InvestingPro’s comprehensive financial analysis, which includes 8 additional key insights about the company’s financial health.
This disclosure was made in a regulatory filing with the Securities and Exchange Commission and is not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor is it incorporated by reference into any of the company’s previous filings under the Exchange Act or the Securities Act of 1933.
The company’s statement also included forward-looking remarks regarding its expectations about the potential for an anti-dumping investigation and its anticipated cooperation. These comments are subject to risks and uncertainties that could cause actual results to differ materially. These risks include general economic and political conditions, business activities in China, the United States, and India, as well as other factors that are detailed in the company’s SEC filings, including its most recent Forms 10-K and 10-Q.
Varex Imaging’s shares are traded on the Nasdaq Global Select Market under the ticker symbol (NASDAQ:VREX). The stock is currently trading near its 52-week low, with analysts setting price targets ranging from $15 to $26 per share, suggesting potential upside. The information provided is based on a press release statement and reflects the company’s position as of the date of the filing, April 4, 2025. While currently unprofitable, analysts tracked by InvestingPro expect the company to return to profitability this year, with earnings forecasts showing positive growth.
In other recent news, Varex Imaging Corporation reported its first-quarter revenue at $200 million, slightly below the Wall Street consensus estimate of $201.7 million. Despite this shortfall, the company surpassed earnings per share expectations with non-GAAP net earnings of $0.07 per diluted share, compared to an analyst estimate of $0.02. Varex projects second-quarter revenues between $200 million and $215 million, with non-GAAP net earnings per diluted share ranging from $0.05 to $0.20. In a separate development, Jefferies analyst Matthew Taylor adjusted Varex’s price target to $15.00 from $16.00, maintaining a Hold rating on the stock. The company’s strong performance in China, with a 7% year-over-year growth, contributed significantly to its revenue. Additionally, Varex secured orders worth approximately $14 million for its cargo inspection systems, highlighting demand for its security solutions. Meanwhile, Varex shareholders approved an amendment to its corporate governance structure, limiting certain officers’ monetary liability for fiduciary duty breaches. The company’s Board of Directors also saw the election of seven directors to serve until the 2026 Annual Meeting.
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