The Salt Lake City, Utah-based company posted profits of $3.8 million, or 10¢ per share, on sales of $191.2 million for the three months ended June 29, seeing profits shrink 64.2% while sales grew 12.4% compared with the same period during the previous year.
Adjusted to exclude one-time items, earnings per share were 34¢, well behind the 51¢ consensus on Wall Street where analysts expected to see sales of $196.9 million, which the company also missed.
“Our third quarter revenues increased more than $20 million from the prior year due primarily to increased sales of high-end radiographic digital detectors and products for the security and oncology markets. Despite this increase, revenues were lower than expected due to normal fluctuations in the timing of customer shipments, as well as late in the quarter softness that appears to be tied to tariff uncertainty. While the ramp-up of CT tube shipments to our Chinese OEM customers has been slower than planned, shipments have begun and we continue to believe in our long-term growth prospects,” CEO Sunny Sanyal said in a press release.
Varex Imaging adjusted its fiscal year 2018 guidance, now expecting to see sales of between $755 million and $765 million and adjusted net EPS of between $1.30 and $1.35.
Shares in Varex are down 24.4% so far today, at $29.11 as of 11:07 a.m. EDT.
In May, Varex met the consensus forecast with its fiscal second-quarter results, powered by a 30% top-line surge, sending share prices up.