Varian Medical Systems, Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Varian Medical Systems, Inc. (NYSE:VAR) will unveil its latest earnings on Wednesday, July 27, 2011. 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, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 83 cents per share, a rise of 12.2% 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 84 cents. Between one and three months ago, the average estimate moved down, but it has been unchanged at 83 cents during the last month. For the year, analysts are projecting profit of $3.47 per share, a rise of 17.2% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by one cent, reporting net income of 86 cents per share against a mean estimate of profit of 85 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $642 million in revenue this quarter, a rise of 11.1% from the year ago quarter. Analysts are forecasting total revenue of $2.6 billion for the year, a rise of 10.2% from last year’s revenue of $2.36 billion.

Analyst Ratings: six out of 11 analysts surveyed (54.5%) have a buy rating on Varian Medical Systems.. This is below the mean analyst rating of 10 competitors, which average 66.7% buy ratings.

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 13.1% while it rose 22.5% in the first quarter and 8.2% in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 10.7% to $648.5 million in second quarter. The figure rose 7.2% in the first quarter from the year earlier, climbed 1.6% in the fourth quarter of the last fiscal year from the year-ago quarter and 13.4% in the third quarter of the last fiscal year.

Competitors to Watch: Accuray Incorporated (NASDAQ:ARAY), TomoTherapy Incorporated (NASDAQ:TOMO), Hologic, Inc. (NASDAQ:HOLX), Theragenics Corporation (NYSE:TGX), BSD Medical Corporation (NASDAQ:BSDM), iCAD, INC. (NASDAQ:ICAD), IsoRay, Inc. (AMEX:ISR), and General Electric Company (NYSE:GE).

Stock Price Performance: During May 24, 2011 to July 21, 2011, the stock price had risen $4.38 (6.5%) from $66.90 to $71.28. 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 up $2 (+2.9%) year to date.

(Source: Xignite Financials)

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