Notable Runner: Varian Medical Systems, Inc.’s (NYSE: VAR)

Varian Medical Systems, Inc.’s (NYSE: VAR) witnessed a gain of 2.12% in recent trading period with closing price of $ 112.06. The company’s last traded volume of 0.83 million shares was above it’s an average volume of 0.59 million shares.

Varian (VAR) recently reported its third quarter fiscal year 2018 results.

“In the third quarter, the team continued to deliver robust results, and we strengthened our leadership in radiation therapy with strong orders and revenue performance,” stated Dow Wilson, Chief Executive Officer of Varian.  “Investment will continue to be a key driver of our long-term growth and value creation, and we made planned investments in the quarter in R&D, Sales, and Marketing to support the company’s future innovation and growth strategies.”

The company ended the quarter with $536M in cash and cash equivalents and $18M of debt.  Net cash provided by operating activities was $102M.  During the quarter, the company invested $39M to repurchase 325,000 shares of ordinary stock.

Oncology Systems Section
In the fiscal third quarter, Oncology revenues totaled $667M, up 18 percent in dollars and 16 percent in constant currency.  Gross orders were $763M, up 11 percent in dollars and 9 percent in constant currency.  Gross orders in the Americas raised 9 percent in dollars and in constant currency, driven by North America at 9 percent.  In EMEA, gross orders rose 27 percent in dollars and 21 percent in constant currency; in APAC, gross orders reduced 7 percent in dollars and 9 percent in constant currency.  Operating earnings for the section raised 20 percent.

Particle Therapy Section
In the fiscal third quarter, Particle Therapy revenues totaled $42M, down 39 percent.  The company did not book any new ProBeam™ orders in the quarter.

Acquisition-Related Expenses and Impairment Charges in THIRD QUARTER
Varian’s GAAP net earnings include acquisition-related expenses totaling $13M for the quarter, primarily driven by acquisition costs and the loss related to hedging the Australian dollar purchase price of Sirtex, partially offset by the breakup fee received from Sirtex in connection with the termination of the acquisition.  Additionally, GAAP net earnings include an impairment charge of $11M related to the predictable refinancing of the Maryland Proton Treatment Center in Baltimore.  Together , these costs, and their associated tax effects, reduced Varian’s net earnings in the third quarter of fiscal 2018 by $0.20 per diluted share on a GAAP basis, and were excluded from non-GAAP results.

FY18 Yearly Guidance Updated
Considering the financial and operational performance year-to-date and the impact of currency and tariffs, fiscal year 2018 guidance is updated to the following:

  • Revenue growth range of 9 percent to 11 percent
  • Non-GAAP Operating earnings as a percentage of revenues range of 17.5 percent to 18.0 percent
  • Non-GAAP effective tax rate of 20 percent
  • Weighted average diluted shares of 93M
  • Non-GAAP Net Earnings per diluted share range of $4.43to $4.48
  • Cash flows from operations range of $475Mto $550M

Please refer to “Discussion of Non-GAAP Financial Measures” below for a description of items excluded from predictable non-GAAP earnings.

 

In the profitability analysis, net profit margin of the firm was recorded at 4.10% and operating profit margin was calculated at 14.60% while gross profit margin was measured as 43.60%. Beta factor, which measures the riskiness of the security, was registered at 0.78.

I am Abby Wheelwright and I have worked with words mostly, in both my education and my career level. I have graduated in English and I have a Master’s Degree in Communication. I taught business and creative writing at the university for seven years and now I work as a corporate teacher and a Financial writer. I adored writing as soon as I discovered it and started to write Tech articles. I am more of an extrovert and like to travel around the world.

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