Varian Q4 Results Miss Estimates; Outlook Weak

(RTTNews) - Varian Medical Systems, Inc. (VAR) reported net income for the fourth quarter of $105.9 million or $1.02 per share, compared to $117.3 million or $1.08 per share for the year-ago quarter.

A delay in an order for an installation at the Maryland Proton Therapy Center and a sharp increase in the tax rate negatively impacted earnings in the latest quarter, the company said.

Revenue for the fourth quarter rose 5% to $812.1 million from $769.9 million a year ago.

Analysts polled by Thomson Reuters expected the company to earn $1.21 per share on revenue of $846.50 million for the fourth quarter.

Looking forward, the company forecasts earnings of $0.76 to $0.80 per share for the first quarter and $4.16 and $4.26 per share for the fiscal year 2015. Both the guidance ranges include an expected $0.09 per share restructuring charge to be taken in the first quarter to realign and reduce the company's staff levels through programs including an enhanced retirement plan.

Analysts currently expect the company to earn $1.04 per share for the first quarter and $4.74 per share for the fiscal year 2015.