Varex Imaging Corporation's stock plummeted 22.30% intraday on Friday, following the company's earnings call where it revised down its revenue guidance for the second quarter of fiscal 2025.

The medical imaging technology company cited supply chain challenges and labor shortages during the holiday period as the primary reasons for the lowered outlook. Unscheduled absences at its US facilities prevented Varex from fulfilling all product demand in the first quarter, leading to a revenue miss of around $5 million.

While demand remained solid, particularly in the industrial segment driven by cargo inspection systems, the company was unable to complete and ship a few orders worth millions of dollars due to production constraints. These orders are expected to be delivered in the second quarter, but the impact has led Varex to revise its revenue guidance down to the range of $200 million to $215 million for the current quarter.