Capacity in market space: Varian Medical Systems, Inc. (NYSE: VAR)

On 11 Feb 2020, Varian Medical Systems, Inc. (NYSE: VAR) spotted trading -3.07% off 52-week high price. On the other end, the stock has been noted 39.96% away from the low price over the last 52-weeks. The stock changed 2.29% to recent value of $145.45. The stock transacted 565808 shares during most recent day however it has an average volume of 629.27K shares. The company has 91.97M of outstanding shares and 90.66M shares were floated in the market.

Varian (VAR) recently reported 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,” stated 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.”

Oncology Systems Section
Oncology Systems revenues totaled $782M, up 11%.  GAAP operating earnings were $136M, up 10%.  Gross orders were $774M, up 8%.  Gross orders in the Americas increased 7% with 4% growth in North America.  In EMEA, gross orders rose 8%.  In APAC, gross orders increased 9% driven by growth in China, South East Asia and Korea that was partially offset by softness in Japan.

Proton Solutions Section
Proton Solutions revenues totaled $28M, down 28%.  The company received one new system order in the quarter.  Operating earnings were influenced by project mix and updated project costs.

Other Section
Revenues for the Other section were $19M.  The Other section is comprised of our Interventional Solutions business, including cryoablation, embolic microspheres, and microwave ablation.  Additionally, it includes our investments in cardiac radioablation.

Non-GAAP Adjustments
This quarter, our GAAP operating earnings and GAAP EPS included a $9M change in the fair value of contingent consideration related to our acquisitions of Endocare and Alicon.  In the first quarter of fiscal year 2019, GAAP net earnings and GAAP EPS included a $22M gain on the sale of our equity investment in Augmenix.

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 section, and the mix of mature and emerging markets.

 Its earnings per share (EPS) expected to touch remained -16.10% for this year while earning per share for the next 5-years is expected to reach at 12.40%. VAR has a gross margin of 42.90% and an operating margin of 12.20% while its profit margin remained 10.20% for the last 12 months.   According to the most recent quarter its current ratio was 1.3 that represents company’s ability to meet its current financial obligations. The price moved ahead of 0.04% from the mean of 20 days, 1.74% from mean of 50 days SMA and performed 13.43% from mean of 200 days price. Company’s performance for the week was 2.84%, -0.80% for month and YTD performance remained 2.42%.


Vivian Moore

Vivian Moore – Health and Biotech I am Vivian Moore, I have done my bachelor’s in English literature, and further on I did my master’s in Medicines. My most preferred genre of writing is health and biotech. I have been writing from the past 6 years about articles, web content, and blogs. In my career and education, I like to play along with work. I have also been a teacher in the past for 2 years. I use to teach business and technical writing in a very famous university. However, most recently I am working as an instructor, designer, and training writer. I enjoy socializing a lot. I am a very big extrovert when it comes to nature. A part of all this I enjoy exploring the world and traveling makes me happy.

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