What to Expect from Varian Medical Systems
Varian Medical Systems (NYS: VAR) is expected to report Q4 earnings on Oct. 25. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Varian Medical Systems's revenues will grow 4.0% and EPS will expand 8.4%.
The average estimate for revenue is $747.7 million. On the bottom line, the average EPS estimate is $1.03.
Revenue details
Last quarter, Varian Medical Systems reported revenue of $705.3 million. GAAP reported sales were 8.6% higher than the prior-year quarter's $649.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
Last quarter, EPS came in at $0.96. GAAP EPS of $0.96 for Q3 were 16% higher than the prior-year quarter's $0.83 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Recent performance
For the preceding quarter, gross margin was 43.6%, 50 basis points better than the prior-year quarter. Operating margin was 21.8%, 20 basis points better than the prior-year quarter. Net margin was 15.4%, 20 basis points better than the prior-year quarter.
Looking ahead
The full year's average estimate for revenue is $2.80 billion. The average EPS estimate is $3.73.
Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 387 members out of 402 rating the stock outperform, and 15 members rating it underperform. Among 112 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 110 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 $73.50.
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The article What to Expect from Varian Medical Systems originally appeared on Fool.com.
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. The Motley Fool has no positions in the stocks mentioned above. 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.
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