2 Healthcare Stocks Generating More Trading Interest After Earnings

Varian Medical Systems Inc. (NYSE:VAR) reported higher profit for the first quarter as revenue showed growth. Net income for the medical appliances and equipment company rose to $902 million (79 cents per share) vs. $96.5 million (80 cents per share) in the same quarter a year earlier. This marks a substantial increase from the year earlier quarter. Revenue rose 978.4% to $6.25 billion from the year earlier quarter. VAR beat the mean analyst estimate of 76 cents per share. It beat the average revenue estimate of $633.3 million.

“While we met our guidance for net earnings and revenues, this was a challenging quarter for the company in a variety of ways,” said Tim Guertin, president and CEO of Varian Medical Systems. “We experienced order push outs in our North American oncology business and X-Ray Product orders and sales were hurt by inventory adjustments by our customers in Japan. As anticipated, the gross margin was impacted by a tough year-ago comparison, product mix, and accounting for Scripps proton revenue with zero margin. Additionally our operating margin was impacted by the dilutive effects of the Calypso acquisition.”

Competitors to Watch: Accuray Incorporated (NASDAQ:ARAY), TomoTherapy Incorporated (NASDAQ:TOMO), North American Scientific, Inc. (NASMQ), Hologic, Inc. (NASDAQ:HOLX), Theragenics Corporation (NYSE:TGX), BSD Medical Corporation (NASDAQ:BSDM), iCAD, INC. (NASDAQ:ICAD), IsoRay, Inc. (AMEX:ISR), and General Electric Company (NYSE:GE).

St. Jude Medical Inc. (NYSE:STJ) reported its results for the fourth quarter. Net income for the medical appliances and equipment company fell to $163.4 million (51 cents per share) vs. $206.4 million (62 cents per share) a year earlier. This is a decline of 20.9% from the year earlier quarter. Revenue rose 4.2% to $1.41 billion from the year earlier quarter. STJ reported adjusted net income of 86 cents per share. By that measure, the company beat the mean estimate of 84 cents per share. Analysts were expecting revenue of $1.4 billion.

Competitors to Watch: Medtronic, Inc. (NYSE:MDT), Boston Scientific Corp. (NYSE:BSX), Edwards Lifesciences Corp (NYSE:EW), Hansen Medical, Inc. (NASDAQ:HNSN), Greatbatch Inc. (NYSE:GB), AtriCure Inc. (NASDAQ:ATRC), Volcano Corporation (NASDAQ:VOLC), C.R. Bard, Inc. (NYSE:BCR), and Stereotaxis, Inc. (NASDAQ:STXS).

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com