Shares of Varian Medical Systems traded 10% higher at times today after the company reported quarterly and annual earnings. The company increased revenue 10% year-over-year and provided FY/20 guidance.
Yesterday afternoon medical device maker Varian Medical Systems Inc. (VAR:NYSE) announced fourth quarter and full year unaudited earnings for the period ending September 27, 2019. The company further advised in the report of the appointment of a new president of Interventional Oncology Solutions and a new Chief Financial Officer both from within the company.
During Q4/19 the firm reported that total company revenues grew by 10% to $879 million compared to Q4/18. During the same period, GAAP operating earnings declined 3% and Non-GAAP operating earnings grew by 13%. The firm stated that Q4/19 GAAP and Non-GAAP net earnings per diluted share were $0.97 and $1.21 respectively. The company noted that "tariff exclusions had a $21 million benefit to revenues, a $4 million benefit to cost of revenues and a $2 million expense triggered by receiving the exclusion, with a net benefit to Non-GAAP operating earnings of $23 million."
For full-year 2019, total company revenues grew 10% to $3.2 billion. The company advised that GAAP operating earnings declined 7% and Non-GAAP operating earnings grew 6%. The firm indicated that FY/19 GAAP and Non-GAAP net earnings per diluted share were $3.38 and $4.63 respectively.
The company announced that effective December 1, 2019, Gary E. Bischoping, Jr., currently SVP, Finance & CFO, will take on a new role as President of Interventional Oncology Solutions. Additionally, J. Michael Bruff, currently SVP Finance and Investor Relations, will succeed Bischoping as SVP, Finance & CFO.
Varian's CEO Dow Wilson commented, "This is the second consecutive fiscal year we have reported double-digit revenue growth and 9% Oncology orders growth; our core business is strong and being powered by our continuous innovation cycle, and our acquisitions are delivering on growth expectations. . .While we have more work to do in sharpening our execution, our order and revenue growth has us looking forward to the next fiscal year. We have strong momentum exiting our fourth quarter and our long-term growth and value creation strategy is delivering for patients, clinicians and our shareholders."
The company also provided full-year 2020 guidance in the report. The firm estimates that, for FY/20, revenues will increase by 9 to 12% to a range of $3.515 to $3.612 billion. For FY/20 the company estimates Non-GAAP net earnings per diluted share of $5.30 to $5.45.
Varian Medical Systems is headquartered in Palo Alto, Calif., and employees 9,200 in 70 countries. The firm is a developer and manufacturer of medical devices and software for treating cancer and other medical conditions with radiotherapy, cardiac radioablation, radiosurgery, proton therapy and brachytherapy. The company claims that it harnesses advanced technologies like artificial intelligence, machine learning and data analytics to enhance cancer treatment and expand access to patient care.
Varian has a market capitalization of about $10.7 billion with approximately 91 million shares outstanding. VAR shares opened higher today at $128.91 (+$11.51, +9.80%) over yesterday's $117.40 closing price. The stock has traded between $124.54 to $135.46 per share today and currently is trading at $126.88 (+9.48, +8.07%).
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