Varian Extends Share Repurchase Program


Varian Medical Systems (VAR) revealed that its Board of Directors has authorized repurchase of an additional 6 million shares of its common stock between Dec 30, 2013 and Dec 31, 2014 on top of its prior repurchase authorization of 8 million shares, initiated on Sep 29, 2012 and expires on Dec 31, 2013.

Under the previous 8 million share repurchase authorization, VAR has repurchased 6.05 million shares for $424.1 million until the end of third quarter of the year. This means there are 1.95 million shares remaining to be repurchased under the repurchase program.  

Varian posted net earnings of $1.08 per share for the fourth quarter of fiscal 2013, which was flat compared with the prior-year quarter and missed the Zacks Consensus Estimate by 4 cents. In fact, net earnings declined 2.4% to $117.3 million from $120.2 million in the year-ago quarter.  

However, net earnings for fiscal 2013 rose 2.6% to $438.2 million from $427.0 million a year ago, while it increased 5.9% to $3.98 from $3.76 on per share basis, missing Varian’s own expectations of $4.00–$4.04 per share.

Revenues edged up 1.8% year-over-year to $769.9 million during the quarter, falling short of the Zacks Consensus Estimate of $780 million and missing the company’s growth projection of 5% for the quarter. Revenues for fiscal 2013 grew 4.8% to $2.9 billion.

VAR expects revenues to grow by 6–7% and earnings per share between 87 and 91 cents for the first quarter of fiscal 2014. For fiscal 2014, VAR anticipates revenues to grow in the range of 6–8% and earnings per share between $4.22 and $4.34.

Currently, Varian retains a Zacks Rank #3 (Hold). Other medical instrument stocks that are worth a look include Cynosure, Inc. (CYNO) and Natus Medical Inc. (BABY) with a Zacks Rank #1 (Strong Buy), and Masimo Corp. (MASI) with a Zacks Rank #2 (Buy).

Read the Full Research Report on VAR
Read the Full Research Report on MASI
Read the Full Research Report on BABY
Read the Full Research Report on CYNO

Zacks Investment Research

View Comments (0)