Varian Falls on Order Data

Shares of Varian Medical Systems (VAR) were lower after the company suggested third-quarter results would beat Street estimates but said orders were flat in its North American oncology business.

In a press release Wednesday, the company said it expects third-quarter earnings per share would be 30% higher than the 45 cents a share reported a year ago. That would result in earnings of 58 cents to 59 cents a share, higher than the consensus estimate of 55 cents a share.

Varian expects third-quarter sales to rise 14%, suggesting $302.6 million, which is slightly below the consensus estimate of $309.9 million.

Third-quarter net orders will rise 15% overall and 14% in its oncology systems business, despite roughly flat oncology orders in North America. The quarter-ending backlog is expected to rise about 14% over the backlog for the same time last fiscal year.

Varian's shares were recently down $5.54, or 7.4%, to $69.85.

The company will release its third-quarter results on July 29.

More from Stocks

One-on-One With Carnival Corporation CEO Arnold Donald (Watch)

One-on-One With Carnival Corporation CEO Arnold Donald (Watch)

Replay: Jim Cramer on the Markets, Tiffany, Micron Technology and Union Pacific

Replay: Jim Cramer on the Markets, Tiffany, Micron Technology and Union Pacific

Carnival CEO Arnold Donald: China Will Become the Largest Cruise Market

Carnival CEO Arnold Donald: China Will Become the Largest Cruise Market

Stocks Finish Higher After Release of Fed Minutes

Stocks Finish Higher After Release of Fed Minutes

Has Wall Street Completely Lost Its Mind on General Electric?

Has Wall Street Completely Lost Its Mind on General Electric?