Salt Lake City-based Varex reported profits of $5.8 million, or 15¢ per share, on sales of $195.8 million for the three months ended March 29, for a bottom-line slide of -52.5% on sales growth of 23.5% compared with Q2 2018.
Adjusted to exclude one-time items, earnings per share were 34¢, a penny ahead of The Street, where analysts were looking for sales of $194.8 million.
“We had solid performance in the second quarter of fiscal year 2019 led by continued strong product sales for the industrial, mammography and oncology markets. Our year-to-date revenues and adjusted gross margin remain on track with expectations,” CEO Sunny Sanyal said in prepared remarks. “We also continued to make good progress with reducing our operating expenses and cost synergies from operational consolidation of acquired imaging businesses are proceeding per plan. In addition, we completed the previously announced acquisition of Direct Conversion last week, which we believe will expand our addressable market by approximately $200 million over the coming years.”
Varex said it still expects to report adjusted EPS of $1.25 to $1.55 for the full fiscal year, but raised its sales forecast to $760 million to $785 million based on a contribution of $7 million to $8 million from Direct Conversion.
VREX shares were off -6.3% tp $30.99 apiece today in mid-afternoon trading.