Varian Medical Systems (VAR) Misses Q1 EPS by 3c, Revenues Beat

Varian Medical Systems (NYSE: VAR) reported Q1 EPS of $1.16, $0.03 worse than the analyst estimate of $1.19. Revenue for the quarter came in at $828.9 million versus the consensus estimate of $826.61 million.

First Quarter 2020 Summary

• Oncology Systems gross orders grew 8% in dollars or 9% in constant currency in the quarter and over the trailing twelve months
• Total company revenues grew 12% in dollars, or 13% in constant currency, to $829 million; organic revenues grew 8%(1)
• GAAP operating earnings declined 1% at 13.3% of revenues; non-GAAP operating earnings grew 13% at 16.2% of revenues
• GAAP net earnings per diluted share of $0.96; non-GAAP net earnings per diluted share of $1.16
• No change to fiscal year 2020 guidance

Varian (NYSE: VAR) today announced its first quarter fiscal year 2020 results.

"In the first quarter, our business fundamentals remained strong and our team delivered solid results with double-digit revenue growth in our Oncology Systems business driven by strong software and services revenue growth," said Dow Wilson, Chief Executive Officer of Varian. "We continue to make planned investments across the portfolio to scale our global sales and operations infrastructure as we execute on our long-term growth and value creation strategy."

Guidance for Full Fiscal Year 2020

Based on solid operating performance in the first fiscal quarter and continued market and product momentum, the company is making no changes to the fiscal year 2020 guidance given during the last earnings call. The company expects earnings to be weighted towards the back-half of the fiscal year as it continues to invest in future growth. The company considers factors that can influence the business, including the strength across the portfolio, growing contribution from software and services, performance variability of the Proton Solutions segment, and the mix of mature and emerging markets.

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

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