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Varian (VAR) to Report Q3 Earnings: What's in the Offing?
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Varian Medical Systems Inc.’s third-quarter fiscal 2020 results are scheduled to release on Aug 5, after market close.
In the last-reported quarter, the company delivered an earnings surprise of 1.2%. Let’s take a look at how things are shaping up prior to this announcement.
Q3 Estimates Picture
Currently, the Zacks Consensus Estimate for fiscal third-quarter revenues is pegged at $ 677.1 million, suggesting a fall of 18% from the year-ago number. The same for adjusted earnings per share (EPS) stands at 55 cents, indicating a year-over-year fall of 58.3%.
Key Catalysts
Varian’s solid Oncology platform is expected to have driven fiscal third-quarter performance. Particularly, the Protons Solutions business is likely to have driven growth.
In the fiscal second quarter, the company inked an agreement with National Health Service Trust for 15 TrueBeam machines to equip centers across England. The company closed the ProBeam 360 system purchase contract in the APAC region. These developments are expected to get reflected on fiscal third-quarter performance.
However, due to the continued impact of the COVID-19 pandemic, overall revenues within the Oncology segment are expected to have been impacted during the fiscal third quarter.
Notably, Varian’s key radiotherapy solutions — Eclipse and TrueBeam — are currently seeing robust demand from healthcare vendors.
In March 2020, Varian announced the newest release of its treatment planning system, Eclipse v16. This release comprises intelligent features such as RapidPlan PT, the first clinical application of machine learning in proton treatment planning.
Varian Medical Systems, Inc. Price and EPS Surprise
The Halcyon Platform is also expected to have contributed to sales in the to-be-reported quarter.In the fiscal second quarter, the company signed a deal for five Halcyon systems to be deployed in centers across England. In March 2020, the company received three new system orders and five system upgrade orders for Halcyon 2.0. The company also received an order for 12 TrueBeam machines, 22 Halcyon systems and one VitalBeam from Pharmstandard in Russia.
Strong customer reception for Ethos therapy solution is also expected to have driven the fiscal third-quarter performance.
The CTSI acquisition, which was integrated into the Oncology unit in 2019, is expected to have continued contributing to the topline during the fiscal third quarter. Moreover, with the takeovers of Endocare, Alicon and Boston Scientific’s microspheres portfolio, Varian has likely strengthened its Interventional Oncology Solutions arm and these are likely to have positively impacted the company’s fiscal third-quarter performance.
What Our Quantitative Model Suggests
Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here as you will see.
Earnings ESP: Varian has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: It carries a Zacks Rank #4 (Sell).
Stocks Worth a Look
Here are a few medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.
Nevro Corporation (NVRO - Free Report) has an Earnings ESP of +15.17% and a Zacks Rank of 3.
GW Pharmaceuticals has an Earnings ESP of +17.38% and a Zacks Rank of 3.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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Varian (VAR) to Report Q3 Earnings: What's in the Offing?
Varian Medical Systems Inc.’s third-quarter fiscal 2020 results are scheduled to release on Aug 5, after market close.
In the last-reported quarter, the company delivered an earnings surprise of 1.2%. Let’s take a look at how things are shaping up prior to this announcement.
Q3 Estimates Picture
Currently, the Zacks Consensus Estimate for fiscal third-quarter revenues is pegged at $ 677.1 million, suggesting a fall of 18% from the year-ago number. The same for adjusted earnings per share (EPS) stands at 55 cents, indicating a year-over-year fall of 58.3%.
Key Catalysts
Varian’s solid Oncology platform is expected to have driven fiscal third-quarter performance. Particularly, the Protons Solutions business is likely to have driven growth.
In the fiscal second quarter, the company inked an agreement with National Health Service Trust for 15 TrueBeam machines to equip centers across England. The company closed the ProBeam 360 system purchase contract in the APAC region. These developments are expected to get reflected on fiscal third-quarter performance.
However, due to the continued impact of the COVID-19 pandemic, overall revenues within the Oncology segment are expected to have been impacted during the fiscal third quarter.
Notably, Varian’s key radiotherapy solutions — Eclipse and TrueBeam — are currently seeing robust demand from healthcare vendors.
In March 2020, Varian announced the newest release of its treatment planning system, Eclipse v16. This release comprises intelligent features such as RapidPlan PT, the first clinical application of machine learning in proton treatment planning.
Varian Medical Systems, Inc. Price and EPS Surprise
Varian Medical Systems, Inc. price-eps-surprise | Varian Medical Systems, Inc. Quote
The Halcyon Platform is also expected to have contributed to sales in the to-be-reported quarter.In the fiscal second quarter, the company signed a deal for five Halcyon systems to be deployed in centers across England. In March 2020, the company received three new system orders and five system upgrade orders for Halcyon 2.0. The company also received an order for 12 TrueBeam machines, 22 Halcyon systems and one VitalBeam from Pharmstandard in Russia.
Strong customer reception for Ethos therapy solution is also expected to have driven the fiscal third-quarter performance.
The CTSI acquisition, which was integrated into the Oncology unit in 2019, is expected to have continued contributing to the topline during the fiscal third quarter. Moreover, with the takeovers of Endocare, Alicon and Boston Scientific’s microspheres portfolio, Varian has likely strengthened its Interventional Oncology Solutions arm and these are likely to have positively impacted the company’s fiscal third-quarter performance.
What Our Quantitative Model Suggests
Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here as you will see.
Earnings ESP: Varian has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: It carries a Zacks Rank #4 (Sell).
Stocks Worth a Look
Here are a few medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.
Integra LifeSciences Holdings Corporation (IART - Free Report) has an Earnings ESP of +20.69% and a Zacks Rank of 3.You can see the complete list of today’s Zacks #1 Rank stocks here.
Nevro Corporation (NVRO - Free Report) has an Earnings ESP of +15.17% and a Zacks Rank of 3.
GW Pharmaceuticals has an Earnings ESP of +17.38% and a Zacks Rank of 3.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>