Varian Medical Systems Inc.

Varian Medical Systems, Inc. (VAR - Analyst Report) just reported another earnings surprise along with increased revenue. The company also released its newest technology for cancer treatment.

Company Description

Varian Medical Systems, Inc. is the world's leading supplier of equipment and software for treating cancer. The company is also a premier supplier of components including X-ray tubes and flat-panel detectors for medical, scientific, and industrial imaging.

Varian employs approximately 3,900 who are located at manufacturing sites in North America and Europe and in its 55 sales and support offices around the world.

Another Earnings Surprise

On Oct 23 Varian announced fourth-quarter results including a 10% year-over-year increase in earnings per share, 68 cents up from 62 cents. Wall Street was expecting 62 cents, making this the fourth earnings surprise in as many quarters. The average surprise has exceeded estimates by 12%.

Net revenue was strong for the quarter, up 15% from the same period last year and was $593 million. The company also saw a 14% swell in its backlog, up 14% to $1.9 billion for the year.

Estimates Rise After Report

Just after the previously mentioned earnings announcement, analysts raised their estimates. Full-year estimates for the current and next year are $2.60 and $2.90, respectively.

The consensus estimates are projecting roughly 12% growth for both this year and next. Using a 5-year growth estimate of 18%, the company is trading with a PEG ratio of 1.0.

New Technology Released Worldwide

The Novalis Tx platform allows doctors to perform image-guided radiosurgery to treat tumors, lesions, and similar conditions without an incision. The platform is a joint venture between Varian and BrainLAB.

Gordon Ray, MD and chairman of the Palo Alto Medical Foundation said "With Novalis Tx, we'll be able to perform radiosurgery that is so conformal, it's as if we're shrink-wrapping the tumor with radiation."

The Chart

After selling off, with the market, shares of VAR have stabilized on a level of support near $39. Take a look at the chart below.

Read the full analyst report on VAR