Varex Imaging (NASDAQ:VREX) stock trailed the market last month by shedding 17% compared to a 2% decline in the S&P 500, according to S&P Global Market Intelligence. The drop has pushed shares to single-digit returns so far in 2019, although the stock rebounded to more solidly positive territory in early September.
August's slump was driven by the mixed fiscal second-quarter results that Varex issued on Aug. 6. The medical device specialist noted healthy demand in several markets including oncology and mammography imaging but saw a sharp drop-off in radiographic detectors. Overall, sales inched higher by 3% to $197 million. Adjusted profitability worsened slightly, falling to 34% of sales from 35% a year earlier.
CEO Sunny Sanyal said at the time that the latest results keep the company on pace to reach its broader 2019 sales goals, which involve revenue ranging from $760 million to $785 million compared to $773 million in 2018. Yet the small-cap stock is likely to remain volatile while sales growth is muted and while Varex implements its restructuring program through mid-2020.