Varian Medical Q4 Results Miss Estimates; Stock Falls

(RTTNews) - Varian Medical Systems, Inc. (VAR) Wednesday said fourth-quarter profit declined from the prior year and missed estimates, despite a rise in revenues which also trailed forecasts. The stock fell over 4 percent in after-market trading.

Net income dropped to $105.9 million or $1.02 per share from $117.3 million or $1.08 per share for the year-ago quarter. Prior-year results have been recast to conform to the segment reporting change.

The latest results were hurt by an order delay for an installation at the Maryland Proton Therapy Center and a sharp increase in tax rate.

On average, 12 analysts polled by Thomson Reuters expected the company to earn $1.21 per share. Analysts' estimates typically exclude special items.

Revenue rose 5 percent to $812.1 million from $769.9 million a year ago. Wall Street expected revenues of $846.50 million for the fourth quarter.

Oncology Systems' fourth quarter revenues grew 6 percent to $622 million, and revenues for the Imaging Components business were unchanged at $168 million.

Net orders improved to $1.113 billion from $886.0 million in the prior year.

Looking forward, the company forecasts earnings of $0.76 to $0.80 per share for the first quarter.

For fiscal 2015, earnings are estimated in a range of $4.16 to $4.26 per share.

The forecasts include an expected $0.09 per share restructuring charge to be taken in the first quarter to realign and reduce the company's staff levels through programs including an enhanced retirement plan.

Analysts currently expect the company to earn $1.04 per share for the first quarter and $4.74 per share for the fiscal year 2015.

The stock closed down 1 percent on Wednesday at $80.99, and slid 4.3 percent in the extended trade.