Varian ( VARI) beat Wall Street's fiscal fourth-quarter estimates Tuesday after the bell and looked to a stronger 2008. The Palo Alto, Calif.-based scientific instruments maker reported a 16.8% increase in adjusted net income for the fourth quarter to $21.2 million, or 69 cents a share, from $18.2 million, or 58 cents a share, in the year-ago period. Revenue increased 12% to $245.6 million, from $219.6 million in the year-ago quarter. Analysts surveyed by Thomson Financial were expecting 64 cents a share, on revenue of $236 million. Revenue from scientific instruments for the quarter increased 13% to $207.3 million from $183.0 million in the 2006 quarter. Revenue from vacuum technologies increased 4.8% to $38.3 million from $36.6 million in the year-ago period. Looking ahead, the company expects adjusted diluted earnings in the range of $2.84 a $2.98 share in fiscal 2008. Analysts surveyed by Thomson Financial are expecting $2.76 a share. Shares rose $3.10, or 4.5%, to $72 in post-market trading.
Stocks soar as the gross domestic product rises at an annualized rate of 3.5% in the third quarter and continuing jobless claims fall. Gregg Greenberg recaps the action in The Real Story video (above).