Varian Medical Systems (NYS: VAR) reported earnings on April 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 30 (Q2), Varian Medical Systems beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share expanded.
Margins dropped across the board.
Varian Medical Systems booked revenue of $720.3 million. The 11 analysts polled by S&P Capital IQ foresaw sales of $699.9 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $648.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.96. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.96 per share on the same basis. GAAP EPS of $0.94 for Q2 were 9.3% higher than the prior-year quarter's $0.86 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 41.2%, 340 basis points worse than the prior-year quarter. Operating margin was 20.0%, 330 basis points worse than the prior-year quarter. Net margin was 15.0%, 90 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $719.2 million. On the bottom line, the average EPS estimate is $1.02.
Next year's average estimate for revenue is $2.83 billion. The average EPS estimate is $3.94.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 378 members out of 393 rating the stock outperform, and 15 members rating it underperform. Among 119 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 117 give Varian Medical Systems a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Varian Medical Systems is outperform, with an average price target of $74.15.
The healthcare investing landscape is littered with also-rans and a few major winners. Is Varian Medical Systems performing well enough for you? Read "Discover the Next Rule-Breaking Multibagger" to learn about a company Fool co-founder David Gardner believes will deliver amazing returns during the next few years. Click here for instant access to this free report.
Add Varian Medical Systems to My Watchlist.
At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.