Varex Imaging Reports Stable Demand; Anticipates Margin Improvement

AI Summary

Varex Imaging reported stable demand across its healthcare and industrial segments amid recent geopolitical events, with security-related inquiries trending flat to positive. The company estimates a gross-margin improvement of 30-50 basis points as older, higher-tariff inventory clears. Varex plans to ramp its manufacturing in India, targeting approximately $100 million in incremental revenue over two years. Additionally, a debt refinancing is expected to save about $7-8 million annually in interest costs, translating to an EPS increase of roughly $0.15-$0.16.