Varex shares fall on Q4 miss

Shares in Varex Imaging (NSDQ:VREX) fell today after the company missed earnings expectations on Wall Street with its fourth-quarter financial results.

The Salt Lake City, Utah-based company posted profits of $200,000, or 1¢ per share, on sales of $204.8 million for the three months ended Sept. 28, for a sales loss of 5% compared with the same period last year. The company’s profits fell from $15 million in Q4 last year.

Adjusted to exclude 1-time items, earnings per share were 29¢, behind consensus on The Street.

“While our revenues for the fourth quarter of fiscal year 2018 decreased from record revenues in the prior year quarter, revenues increased 7% sequentially from the third quarter of fiscal year 2018 driven by growth in the CT, mammography and industrial markets,” CEO Sunny Sanyal said in prepared remarks. “In the fourth quarter, we continued to see pressure on our gross margins and we began to be directly impacted by China-related tariffs. We estimate that tariffs reduced our gross profit by $2 million for the quarter.”

For the full year, Varex posted revenues of $773 million, up 11% compared to the prior year. Net earnings for the year were $27 million, or 72¢ per share, compared to $52 million in 2017.

VREX shares were trading at $24.66 apiece today in mid-morning activity, down -5.6%.

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