Varian Medical Systems Earnings: Here’s Why Investors are Not Excited Now
Varian Medical Systems Inc. (NYSE:VAR) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 4.90%.
Varian Medical Systems Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 10.64% to $1.04 in the quarter versus EPS of $0.94 in the year-earlier quarter.
Revenue: Rose 6.68% to $768.4 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Varian Medical Systems Inc. reported adjusted EPS income of $1.04 per share. By that measure, the company beat the mean analyst estimate of $1.02. It beat the average revenue estimate of $758.02 million.
Quoting Management: “Varian’s revenues and net earnings continued to grow during the second quarter in line with our expectations for the company,” said Dow R. Wilson, CEO of Varian Medical Systems. “Net orders rose in double digits for our X-Ray Products business, but fell in our Oncology business, principally because of weakness in mature U.S. and Western European markets as well as a tough quarter-over-quarter comparison in Asia and negative fluctuations in currency exchange rates, predominantly in Japan.”
Key Stats (on next page)…
Revenue increased 13.27% from $678.4 million in the previous quarter. EPS increased 20.93% from $0.86 in the previous quarter.
Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $1.05 and has not changed. For the current year, the average estimate has moved down from a profit of $4.13 to a profit of $4.12 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)