Varian Q3 Profit Tops Estimates; Raises FY15 Earnings Guidance - Quick Facts

(RTTNews) - Varian Medical Systems (VAR) reported third-quarter net earnings attributable to company of $113.5 million or $1.13 per share compared to $107.1 million or $1.02 per share, last year. The company noted that its third quarter in the year-ago period recorded a $0.06 per share charge related to the impairment of a portion of the company's investment in Augmenix.

On average, eight analysts polled by Thomson Reuters expected the company to report profit per share of $1.11 for the quarter. Analysts' estimates typically exclude special items.

Revenues were $784.0 million, compared to $747.7 million, previous year. Analysts expected revenue of $810.41 million for the quarter. Company-wide revenues were up 5 percent from the year-ago quarter and up 11 percent in constant currency.

"The third quarter was mixed for Varian with double-digit constant currency gross orders growth in Oncology Systems, significant challenges in Imaging Components, and strong performance in Particle Therapy. The stronger U.S. dollar continued to have a big impact on our performance, contributing to lower margins. Excellent cost controls enabled us to deliver solid earnings for the period," said Dow Wilson, CEO of Varian Medical Systems.

Varian expects that revenues for the full fiscal year will increase by about 2 percent in dollars and by about 6 percent in constant currency. The company now believes that its earnings for fiscal 2015 could be in the range of $4.20 to $4.25 per share. Analysts expect the company to report earnings per share of $4.29.

Separately, Varian announced it has, through one of its European subsidiaries, agreed to acquire Claymount, a privately-held, Netherlands-based supplier of components and subsystems for X-ray imaging equipment manufacturers. Varian's subsidiary in the Netherlands will pay approximately 50 million euros in cash for Claymount.