Varian Medical Systems (VAR) Misses Q2 EPS by 10c, Revenues Beat; Raises FY19 Revenue Guidance & Revenue Growth Rate, Affirms FY19 EPS Outlook

Varian Medical Systems (NYSE: VAR) reported Q2 EPS of $1.05, $0.10 worse than the analyst estimate of $1.15. Revenue for the quarter came in at $779.4 million versus the consensus estimate of $776.28 million.

• Oncology gross orders grew 15% in dollars, or 18% in constant currency
• Total company revenues grew 7% in dollars, or 10% in constant currency, to $779 million
• GAAP operating earnings grew 1% at 14.1% of revenues; Non-GAAP operating earnings declined 6% at 15.3% of revenues
• GAAP net earnings per diluted share of $0.96; Non-GAAP net earnings per diluted share of $1.05
• Recently enacted US/China tariffs negatively impacted revenue growth by $9 million or 120 basis points and GAAP operating earnings growth by $13 million or 160 basis points
• Raising revenue growth range for fiscal year 2019 guidance; reaffirming Non-GAAP net earnings per diluted share range of $4.60 to $4.75

"In the second quarter, we maintained strong momentum," said Dow Wilson, chief executive officer of Varian. "Each of our geographies delivered exceptional orders growth, including strong double-digit performance in APAC and the seventh consecutive quarter of double-digit growth in EMEA. Based on the company's results year-to-date and our outlook for the rest of the year, we are raising our fiscal year revenue guidance to 6 to 9 percent while increasing investments in growth priorities such as groundbreaking preclinical research with our FlashForward Consortium."

GUIDANCE:

Varian Medical Systems sees FY2019 EPS of $4.60-$4.75, versus the consensus of $4.74. Varian Medical Systems sees FY2019 revenue of $3.09-3.18 billion, versus the consensus of $3.13 billion.

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

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