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How Varian Medical Systems Fared in the Fourth Quarter

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Varian Medical Systems (VAR) released its fourth-quarter fiscal 2018 results on October 23. The company’s total revenues increased from $721.8 million in the fourth quarter of fiscal 2017 to $801.6 million in the fourth quarter of fiscal 2018. Varian’s gross margin contracted from 42.4% in the fourth quarter of fiscal 2017 to 42.3% in the latest quarter.

Varian’s gross orders increased by 13% to $1.1 billion from the corresponding period last year. In the Americas, its gross orders increased by 6% during this quarter due to large multi-site orders and demand in radiosurgery and stereotactic body radiotherapy solutions in North America. In the EMEA region, the year-over-year increase in gross orders was 14%, and in APAC, it was 31%, which was attributable to strong execution by the company in China, Japan, and Australia.

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Varian Medical Systems reported net income of $116.8 million in the fourth quarter of fiscal 2018 as compared to $78.6 million in the fourth quarter of fiscal 2017. This translated into net earnings per share of $1.26 in the fourth quarter of fiscal 2018 as compared with net earnings per share of $0.85 in the fourth quarter of fiscal 2017.

For fiscal 2019, Varian expects its revenues to be in the range of $3.06 billion to $3.15 billion. The company expects its EPS to be in the range of $4.60 to $4.75.

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