In a report issued on October 23, Sean Lavin from BTIG maintained a Hold rating on Varian Medical Systems (NYSE: VAR). The company’s shares closed yesterday at $112.40.
Lavin wrote:
“Varian reported an impressive $35M topline beat and a ~$90M beat on gross orders this quarter. While those headline results looked good, gross and operating margins were both below consensus expectations (110 bps and 90 bps lower, respectively). Going into the quarter, we were apprehensive on shares, worried tariffs could hit margins and push guidance below the Street. VAR plans to offset about 70% of the tariff impact (which we see as impressive) through supply chain shifts and tweaks to but still had to guide EPS below the Street driven by the remaining hit. We worried a bit about this in our preview. FY19 revenue guidance of $3.06-$3.15B was set above the Street’s $3.00B estimate yet anticipated operating margin (17-18%) and non-GAAP EPS ($4.60-$4.75) came in below consensus.”
According to TipRanks.com, Lavin is a 5-star analyst with an average return of 11.8% and a 59.8% success rate. Lavin covers the Healthcare sector, focusing on stocks such as Establishment Labs Holdings Inc, Helius Medical Technologies, and Tactile Systems Technology.
Currently, the analyst consensus on Varian Medical Systems is a Hold with an average price target of $119.75, representing a 6.5% upside. In a report issued on October 19, Robert W. Baird also initiated coverage with a Hold rating on the stock with a $119 price target.
.
See today’s analyst top recommended stocks >>
Based on Varian Medical Systems’ latest earnings release for the quarter ending September 30, the company reported a quarterly net profit of $116 million. In comparison, last year the company earned revenue of $739 million and had a net profit of $82.7 million.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
Varian Medical Systems, Inc. engages in the manufacture of medical devices and software for treating cancer and other medical conditions. It operates through the Oncology Systems and Varian Particle Therapy segments.
