Varex Imaging Struggles with Demand Forecasting Amid Economic and Geopolitical Challenges

Varex Imaging Corporation (VREX) has disclosed a new risk, in the Accounting & Financial Operations category.

Varex Imaging Corporation faces significant challenges in accurately predicting product demand and delivery schedules due to frequent changes in customer order forecasts. These challenges are exacerbated by external factors such as economic uncertainties, geopolitical tensions, and regulatory changes, which affect customers’ ability to plan future activities. The lead-time required for product manufacturing means that unexpected shifts in customer demand can result in excess inventory and reduced sales, impacting the company’s operating results. Additionally, variations in customer purchasing volumes, partly due to the longer lifespan of X-ray tubes, further complicate Varex’s ability to forecast demand accurately.

Overall, Wall Street has a Moderate Buy consensus rating on VREX stock based on 2 Buys.

To learn more about Varex Imaging Corporation’s risk factors, click here.