Free Research Report as Varian’s Adjusted EPS Surged 112% and Revenues Advanced 12.8%

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LONDON, UK / ACCESSWIRE / January 30, 2018 / Active-Investors.com has just released a free earnings report on Varian Medical Systems, Inc. (NYSE: VAR) (“Varian”). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=VAR. The Company posted its first quarter fiscal 2018 (Q1 FY18) financial results on January 24, 2018. The leading medical devices and software products manufacturer’s revenues and earnings surpassed market expectations. Register today and get access to over 1000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for Intuitive Surgical, Inc. (NASDAQ: ISRG), which also belongs to the Healthcare sector as the Company Varian Medical Systems. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Varian Medical Systems most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=VAR

Earnings Highlights and Summary

During the first quarter of the fiscal year 2018, Varian posted net sales of $678.50 million compared to $601.50 million in Q1 FY17, reflecting an increase of 12.80%. Varian’s sales growth was primarily backed by higher linac systems sales in the Oncology Operating segment. The Company’s revenue numbers beat analysts’ estimates of $639.47 million.

Varian’s gross profit was $302.8 million in Q1 FY18 compared to $267.00 million in Q1 FY17, increasing 13.41% on a y-o-y basis. The Company’s selling, general, and administrative expenses (SG&A) amounted to $125.50 million in the reported quarter compared to $161.40 million in the year ago same period, decreasing 22.24% on a y-o-y basis. The Company’s operating profit was $121.40 million in Q1 FY18 compared to $17.40 million in Q1 FY17, soaring 597.70% on a y-o-y basis.

Varian’s net loss was $112.30 million, or $1.22 loss per share, in Q1 FY18 compared to a net income of $13.90 million, or $0.15 per share, in Q1 FY17. The decline was due to the impact of the new Tax Cuts and Jobs Act. The Company’s adjusted earnings were $1.06 in the reported quarter compared to $0.50 in Q1 FY17, surging 112% on a y-o-y basis. The increase in EPS was attributed to a strong growth, operational execution, and the non-recurrence of a prior-year accounts receivable in the Particle Therapy business. The Company’s adjusted earnings numbers beat analysts’ estimates of $0.98.

Segment Details

Varian has two business segments, namely: (i) Oncology Systems segment, and (ii) Particle Therapy segment.

The Oncology Systems segment reported net sales of $649.40 million in Q1 FY18 compared to $571.20 million in Q1 FY17, reflecting a growth of 13.69% versus the year ago comparable period. The segment’s gross orders were $619.90 million in the reported quarter compared to $576.70 million in Q1 FY17, increasing 7.49% on a y-o-y basis. The segment’s gross orders in the Americas increased 2% on a y-o-y basis. In Europe, the Middle-East, and Africa (EMEA), Oncology Systems’ gross orders rose 19% in USD terms, and 13% in constant currency, to $190 million, while in Asia/Pacific (APAC), gross orders advanced 6% on a y-o-y basis.

The Particle Therapy segment posted net sales of $29.10 million in Q1 FY18 compared to $30.30 million in Q1 FY17, decreasing 3.96% on a y-o-y basis. The segment’s gross orders were $46.20 million in Q1 FY18 compared to $4.30 million in Q1 FY17. During the reported quarter, the Company booked ProBeam Compact orders from the University of Alabama at Birmingham and the Sylvester Comprehensive Cancer Center at the University of Miami, totaling $46.00 million.

Cash Matters

As on December 29, 2017, Varian had cash and cash equivalents of $822.60 million. The Company’s cash inflow from operating activities was $179.00 million in the reported quarter compared to $82.20 million in Q1 FY17. During the reported quarter, Varian repurchased 525,000 shares of its common stock for $57.00 million.

Outlook

For the fiscal year 2018, Varian is anticipating sales growth to be in the range of 4.00% – 7.00%. The Company expects adjusted EPS to be in the band of $4.24 – $4.36. The Company’s cash flow from operations is projected to be in the range of $475.00 million – $550.00 million.

Stock Performance Snapshot

January 29, 2018 – At Monday’s closing bell, Varian Medical Systems’ stock was slightly down 0.69%, ending the trading session at $128.57.

Volume traded for the day: 959.06 thousand shares, which was above the 3-month average volume of 773.40 thousand shares.

Stock performance in the last month – up 15.72%; previous three-month period – up 23.14%; past twelve-month period – up 63.50%; and year-to-date – up 15.67%

After yesterday’s close, Varian Medical Systems’ market cap was at $11.82 billion.

Price to Earnings (P/E) ratio was at 92.56.

The stock is part of the Healthcare sector, categorized under the Medical Appliances & Equipment industry.

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