Varian Medical Systems: Here’s What Investors Need to Know Before Earnings

Varian Medical Systems (NYSE:VAR) will report earnings after markets close on Wednesday, July 24th. Varian Medical Systems, Inc. designs, manufactures, sells, and services equipment and software products for treating cancer with radiotherapy, stereotactic radiosurgery and brachytherapy. The Company also supplies products that include x-ray tubes, linear accelerators, digital image detectors, image processing software and image detection products.

Here is your Cheat Sheet to Varian Medical Systems Earnings:

Earnings Expectations: Analysts expect earnings of $1.01 per share on revenues of $749.01 million. Currently, the company’s P/E ratio stands at 18.07.

Analyst Trends:

Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.2 to a profit $1.21. For the current year, the average estimate is a profit of $4.1, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how Varian Medical Systems has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 2,070 2,214 2,357 2,597 2,807
Diluted EPS ($) 2.19 2.55 2.91 3.36 3.76

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012 Mar. 31, 2013
Revenue ($) in millions 705.30 756.10 678.40 768.40
Diluted EPS ($) 0.96 1.08 0.86 1.02

Past Performance:
Varian Medical Systems has beat analyst estimates 2 times in the past four quarters. This is not consistent enough to get bullish yet.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)