Varian Medical Earnings Rise

Shares fall 2%.
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Radiation products maker

Varian Medical Systems

(VAR) - Get Report

said second-quarter profit rose 3% from a year ago, helped by strong sales of its oncology systems and X-ray products.

The Palo Alto, Calif.-based company earned $55.8 million, or 41 cents a share, compared with $54.2 million, or 39 cents a share, a year ago. After adjusting for stock option expenses, the company earned 46 cents a share in the quarter, in line with the analysts' forecast.

Revenue was $413.9 million in the quarter, up 18%. The Wall Street estimate was $402.4 million.

Revenue at the company's oncology systems rose 18% to $346 million while X-ray products earnings increased 21% to $61 million.

The company expects its third-quarter earnings a share to grow about 14%, excluding stock option expenses of 5 cents a share. Sales are expected to grow in the low double digits from last year.

For the full year, the company forecasts earnings a share to grow by 17% to 18%, excluding option expenses of 19 cents a share to 22 cents a share. The company sees full year revenue growth of 14%.

"The second quarter was marked by strong revenue growth in our Oncology Systems and X-Ray Products businesses with solid contributions from some of our emerging businesses in brachytherapy and flat-panel digital image detectors for filmless X-rays," the company said.

The company's stock was trading at $51.70, down $1.20.

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