Varian Medical Systems (VAR) Misses Q1 EPS by 30c, Sales Just Shy

Varian Medical Systems (NYSE: VAR) reported Q1 EPS of $0.75, $0.30 worse than the analyst estimate of $1.05. Revenue for the quarter came in at $763 million versus the consensus estimate of $766.39 million.

GUIDANCE:

Varian Medical Systems sees Q2 2017 EPS of $0.84-$0.90, versus the consensus of $1.19.

"For the second quarter, we believe Varian revenues from continuing operations will grow in the range of 4 to 5 percent and non-GAAP earnings per diluted share will be in the range of $0.84 to $0.90," Wilson added. The company intends to repurchase 2 million shares of stock in its second quarter of fiscal year 2017. Varian will publish a historical annual breakdown of continuing and discontinued operations for fiscal years 2014-2016 on our website filing shortly following the separation. Separately, the company will make available quarterly pre-tax results for fiscal year 2016."

Please refer to "Discussion of Non-GAAP Financial Measures\" below for a description of items excluded from expected non-GAAP earnings.

Varex Outlook "For Varex Imaging, we expect revenues for fiscal year 2017 to grow by 3-4 percent over the $620 million total recorded for fiscal year 2016 in our Form 10 filing with the SEC," said Sanyal. "Assuming approximately 38 million shares outstanding and a 35 percent tax rate, we anticipate that GAAP net earnings per diluted share for the second through the fourth quarters of the fiscal year 2017 will be in the range of $1.20 to $1.30. Going forward Varex Imaging will provide annual guidance.

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

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