Varian Medical Systems Inc. First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Varian Medical Systems Inc. (NYSE:VAR) will unveil its latest earnings on Wednesday, January 25, 2012. Varian Medical Systems manufactures, designs, services and sells equipment and software products for treating cancer with radiotherapy, stereotactic radiosurgery and brachytherapy.

Varian Medical Systems Inc. Earnings Preview Cheat Sheet.

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 76 cents per share, a decline of 5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 89 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 76 cents during the last month. Analysts are projecting profit to rise by 15.1% versus last year to $3.96.

Past Earnings Performance: The company fell short of estimates last quarter after being in line with forecasts the quarter prior. In the fourth quarter of the last fiscal year, it reported profit of 95 cents per share versus a mean estimate of 97 cents. Two quarters ago, it reported net income of 83 cents per share.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 9.2% in revenue from the year-earlier quarter to $633.3 million.

Analyst Ratings: Analysts are bullish on this stock with nine analysts rating it as a buy, none rating it as a sell and three rating it as a hold. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

A Look Back: In the fourth quarter of the last fiscal year, profit fell 4.1% to $100.8 million (87 cents a share) from $105 million (86 cents a share) the year earlier, missing analyst expectations. Revenue rose 10.3% to $718.9 million from $652.1 million.

Key Stats:

The decrease in profit in the fourth quarter of the last fiscal year broke a streak of three consecutive quarters of year-over-year profit increases. Net income rose 15.3% in the third quarter of the last fiscal year, 13.1% in the second quarter of the last fiscal year and 22.5% in the first quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue rose 12.3% in the third quarter of the last fiscal year from the year earlier, climbed 10.7% in the second quarter of the last fiscal year from the year-ago quarter and 7.2% in the first quarter of the last fiscal year.

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).

Stock Price Performance: During October 21, 2011 to January 19, 2012, the stock price had risen $14.02 (24.3%) from $57.68 to $71.70. The stock price saw one of its best stretches over the last year between December 16, 2011 and December 27, 2011 when shares rose for seven-straight days, rising 5.5% (+$3.49) over that span. It saw one of its worst periods between March 3, 2011 and March 16, 2011 when shares fell for 10-straight days, falling 9.6% (-$6.86) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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