S&P 500 (NYSE:SPY) component Varian Medical Systems, Inc. (NYSE:VAR) reported its results for the second quarter. Varian Medical Systems, Inc. manufactures, designs, services and sells equipment and software products for treating cancer with radiotherapy, stereotactic radiosurgery and brachytherapy.
Varian Medical Systems Earnings Cheat Sheet for the Second Quarter
Results: Net income for the medical appliances and equipment company rose to $103.1 million (86 cents/share) vs. $91.1 million (73 cents/share) in the same quarter a year earlier. A rise of 13.2% from the year earlier quarter.
Revenue: Rose 10.7% to $648.4 million YoY.
Actual vs. Wall St. Expectations: VAR beat the mean analyst estimate of 85 cents/share. Estimates ranged from 83 cents per share to 88 cents per share.
Quoting Management:“Demand for our new TrueBeam system, Oncology services, X-ray tubes and panels, as well as our security products, led to healthy orders and revenue growth and improved gross and operating margins during the quarter,” said Tim Guertin, president and CEO of Varian Medical Systems. “Although it is too early to determine the eventual impact of the tragic situation in Japan, it had minimal impact on orders, revenues, and profits in any of our businesses during the quarter.”
The company has now seen net income rise in three-straight quarters. In the first quarter, net income rose 22.5% and in the fourth quarter of the last fiscal year, the figure rose 8.2%.
Gross margins grew 1.2 percentage points to 44.6%. The growth seemed to be driven by increased revenue, as the figure rose 10.7% from the year earlier quarter while costs rose 8.4%.
Over the last five quarters, revenue has increased 7.7% on average year over year. The biggest increase came in the third quarter of the last fiscal year, when revenue rose 13.4% from the year earlier quarter.
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), DGT Holding corp (DGTCD), IsoRay, Inc. (AMEX:ISR), and General Electric Company (NYSE:GE).
Today’s Performance: Shares of VAR are unchanged in after hours trading.