Varian Medical Systems (VAR) Tops Q2 EPS by 11c, Beats on Revenues; Offers FY18 EPS Guidance Above Consensus

Varian Medical Systems (NYSE: VAR) reported Q2 EPS of $1.15, $0.11 better than the analyst estimate of $1.04. Revenue for the quarter came in at $730 million versus the consensus estimate of $688.55 million.

Second Quarter 2018 Summary

• Revenues of $730 million grew 10 percent, or 6 percent in constant currency
• Oncology gross orders grew 5 percent, or 1 percent in constant currency
• GAAP operating earnings of 12.9 percent of revenues; Non-GAAP of 17.6 percent
• GAAP net earnings per diluted share from continuing operations of $0.79; Non-GAAP net earnings per diluted share from continuing operations of $1.15

FY18 Annual Guidance Updated

Considering the financial and operational performance in the first half and the impact of currency, fiscal year 2018 guidance is updated to the following:

• Revenue growth range of 6 percent to 9 percent, which now includes the impact from currency for the remainder of the year
• Non-GAAP Operating earnings as a percentage of revenues range of 18 percent to 19 percent
• Non-GAAP effective tax rate of 20 percent
• Weighted average diluted shares of 93 million
• Non-GAAP Earnings per diluted share range of $4.43 to $4.53
• Cash flow from operations range of $475 million to $550 million

GUIDANCE:

Varian Medical Systems sees FY2018 EPS of $4.43-$4.53, versus the consensus of $4.34.

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

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