Varian Medical Systems (VAR) - Get Varian Medical Systems, Inc. Report said fourth-quarter earnings rose 35.1% from the year-ago period, helped by strong sales of its oncology systems and X-ray products.
The Palo Alto, Calif.-based company earned $82.4 million, or 62 cents a share, in the quarter, compared with $61 million, or 45 cents a share, a year ago. Adjusted for items, earnings were 59 cents a share in the quarter. Analysts polled by Thomson First Call were expecting earnings of 53 cents a share.
Fourth-quarter revenue rose 17.6% from a year ago to $454 million, against analysts' estimation of $440.5 million.
The company expects its first-quarter earnings per share and revenue, excluding stock-option expenses, to increase by a percentage in the mid-teens compared with the same period in fiscal 2006.
For the full year, the company forecasts earnings of $2.08 to $2.10 a share, excluding option expenses. The company sees full-year revenue growth 13% above fiscal 2006 levels. Analysts were expecting earnings of $2.04 a share on revenue of $1.8 billion for the full year.
Revenue at the company's oncology systems rose 17% to $383 million; revenue at X-ray products rose 15% to $59 million.
"Robust demand for advanced products for image-guided radiotherapy (IGRT), stereotactic radiosurgery, brachytherapy, and filmless X-ray imaging contributed to our growth in net orders, revenues, and net earnings during the quarter and the fiscal year," the company said. "We ended fiscal year 2006 on a particularly strong note that sets the stage for continued growth in fiscal year 2007 and beyond."
Shares of Varian were up $3.20, or 6.7%, to $50.79 in after-hours trading Wednesday.
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