Varian Medical Systems 3Q Earnings Pregame Scorecard

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Last quarter Varian Medical Systems (NYSE:VAR) met Wall Street estimates, and it is scheduled to report again on Wednesday.

Expectations

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Analysts currently expect Varian Medical Systems to come in with earnings of 93 cents per share on revenues of $711.9 million. Estimates from analysts range from earnings per share to earnings per share. Over the past three months, the average estimate has moved down from $1.02.

Stock Movement

In terms of price changes, the stock's best recent streak was when it gained $3.47 per share between June 1, 2012 and June 20, 2012. Looking at change over the last three months, April 23, 2012 and July 18, 2012, the stock price fell $6.85 (-10.3%), from $66.71 to $59.86.

Company Fundamental Trends On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 12.3% in the third quarter of the last fiscal year, 10.3% in the fourth quarter of the last fiscal year and 7.8% in the first quarter before increasing again in the second quarter. The company will try to take advantage of the positive momentum from last quarter's income increase heading into this earnings announcement. Profit rose in the second quarter after net income declines during the fourth quarter of the last fiscal year and first quarter.

Stock Ratings

Analysts are bullish on the stock as nine analysts rate it as a buy and there are no sell ratings. Analyst sentiment has been waning recently, as the average rating has dropped slightly over the past three months.

Last Quarter's Results

In the second quarter, profit rose 4.6% to $107.8 million (94 cents a share) from $103.1 million (86 cents a share) the year earlier, meeting analyst expectations. Revenue rose 11.1% to $720.3 million from $648.5 million.

Summary

Reporting Period: 3Q

Date of Release: Wednesday, July 25, 2012

EPS: 93 cents

Revenue Estimate: $711.9 million

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)