Varian Medical Systems Inc. Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Varian Medical Systems Inc. (NYSE:VAR) will unveil its latest earnings on Thursday, October 27, 2011. 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 97 cents per share, a rise of 11.5% 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 98 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 97 cents during the last month. For the year, analysts are projecting profit of $3.45 per share, a rise of 16.6% from last year.

Past Earnings Performance: Last quarter, the company saw net income of 83 cents per share versus a mean estimate of profit of 83 cents per share. This comes after two consecutive quarters of exceeding expectations.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 12.1% in revenue from the year-earlier quarter to $730.9 million.

Analyst Ratings: Analysts are bullish on Varian Medical Systems as five analysts rate it as a buy, none rate it as a sell and five rate it as a hold.

A Look Back: In the third quarter, profit rose 15.3% to $98.6 million (83 cents a share) from $85.5 million (69 cents a share) the year earlier, meeting analyst expectations. Revenue rose 12.3% to $649.4 million from $578.1 million.

Key Stats:

The company has seen net income rise in three straight quarters. Net income rose 13.1% in the second quarter and 22.5% in the first quarter.

Revenue has risen the past four quarters. Revenue rose 10.7% in the second quarter from the year earlier, climbed 7.2% in the first quarter from the year-ago quarter and 1.6% in the fourth 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 September 23, 2011 to October 21, 2011, the stock price had risen $7.83 (15.7%) from $49.85 to $57.68. The stock price saw one of its best stretches over the last year between February 4, 2011 and February 14, 2011 when shares rose for seven-straight days, rising 5.9% (+$3.96) 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. Shares are down $11.60 (-16.7%) year to date.

(Source: Xignite Financials)

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