The Salt Lake City, Utah-based company posted profits of $3 million, or 8¢ per share, on sales of $185.7 million for the three months ended December 28, seeing a 73.5% drop on the bottom line while sales grew 5.4% compared with the same period during the previous year.
After adjusting to exclude one-time items, earnings per share were 26¢, ahead of the 22¢ consensus on Wall Street, where analysts expected to see sales of $176.7 million, which the company topped.
“Revenues in the first quarter of fiscal year 2019 increased by 5%, or more than $9 million, from the prior year quarter. The direct impact from tariffs in the first quarter was lower than expected and a factor in the sequential improvement of our gross margin from the fourth quarter of fiscal year 2018. During the first quarter, shipments of CT tubes to our OEM customers in China continued to gain momentum and we are on track to ship more than twice as many units as we shipped last year. Several customers are nearing the end stages of development while others are in the regulatory approval process for their new CT systems. Looking ahead, we anticipate adding new pricing agreements with some of the smaller OEMs over the coming quarters,” CEO Sunny Sanyal said in a press release.
Varex Imaging reiterated previous guidance for the full year, expecting to see sales of between $755 million and $780 million with adjusted net EPS of between $1.25 and $1.55.
Shares have risen approximately 9.1% so far today, at $31.65 as of 1:13 p.m. EST.
Last November, Varex saw shares fall after the company missed earnings expectations on Wall Street with its fourth-quarter financial results.