Varian Medical Systems (VAR) Tops Q1 EPS by 12c, Maintains FY EPS Guidance

Varian Medical Systems (NYSE: VAR) reported Q1 EPS of $0.99, $0.12 better than the analyst estimate of $0.87. Revenue for the quarter came in at $737.9 million versus the consensus estimate of $720.83 million.

Varian Medical Systems sees Q2 2015 EPS of $0.98-$1.02, versus the consensus of $1.12.

Varian Medical Systems sees FY2015 EPS of $4.16-$4.26, versus the consensus of $4.31.

Outlook

"The company got off to a good start in the first quarter of fiscal 2015 with revenues and earnings coming in ahead of expectations," said Wilson. "Our outlook for the full fiscal year is heavily impacted by the recent dramatic swing in currency exchange rates which we believe will significantly reduce revenues and earnings in the balance of the year. We now believe that total company revenues for fiscal year 2015 could increase by about 5 percent. With the earnings momentum of the first quarter, we believe that we can maintain our prior guidance of $4.16 to $4.26 per diluted share for the fiscal year.

"Given current exchange rates and the expected timing of shipments in the year, we believe total company revenues for the second quarter should increase by about 2 percent versus the year-ago period. Net earnings per diluted share for the second quarter could be in the range of $0.98 to $1.02."

The guidance excludes contracted proton projects that are not yet financed or booked into backlog. If these projects are booked during the fiscal year, the potential upside in revenues and profits could be significant.

For earnings history and earnings-related data on Varian Medical Systems (VAR) click here.

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