Why Has Varian Medical Systems Stock Trended Higher Over The Last Month?

Varian Medical Systems (NYSE:VAR), a company that specializes in medical devices for radiation oncology treatments, has seen its stock price rise by 10% over the last month, driven in part by reasonably strong Q4 FY’19 results that were published in late October. (FY ends September) While the company’s revenues grew 9.6% YoY to $878.9 million, beating estimates by about $20 million on the back of strong oncology division revenues, earnings largely met analysts’ estimates. The company’s projections for FY’20 were also reasonably strong, with revenues expected to grow 9% to 12%, with adjusted margins projected to grow from 16.8% in FY’19 to between 17.5% to 18.5%, driven by software sales and an expansion into more high growth, high margin businesses.

We ‘step back’ from these recent swings to review performance over the last few years, as a context for what might come next. Our Interactive dashboard, Why Has Varian Medical Systems Stock Gained 10% Over The Last Month? reviews the near term reasons and the big picture.

The context for the last few years:

A closer look at Varian Medical Systems’ Total Revenues over the last few years and the outlook

Total Revenues for Varian Medical Systems increased from $2.9 Bil in 2018 to $3.2 Bil in 2019; an increase of 10.5%.

This compares with Total Revenues growth of:

• -18.3% in 2015
• 4.14% in 2016
• 0.987% in 2017
• 11.4% in 2018

We expect Total Revenues growth to be 11.6% in 2020.

A closer look At Varian Medical Systems’ Total Expenses over the last few years and the outlook

Total Expense for Varian Medical Systems increased from $2.5 billion in 2018 to $2.8 billion in 2019, an increase of 12.9%

This compares with Total Expense growth of:

• -15.6% in 2015
• 3.44% in 2016
• 7.17% in 2017
• 6.51% in 2018

We expect Total Expense growth to be 4.1% in 2020.

How does Varian Medical Systems’ Revenue Growth compare with rivals?

For more information on how Varian Medical Systems Revenue growth compares with rivals Elekta and Coupa, view our interactive dashboard analysis.

How has Varian Medical Systems’ EBT trended?

EBT for Varian Medical Systems declined by 2.3% in 2019.

We expect EBT to increase 59% in 2020.

How has Varian Medical Systems’ Net Income and EPS trended?

For more information on Varian Medical Systems’ Net Income and EPS view our interactive dashboard analysis.

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