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Varian Medical Systems Q3 Profit Tops Estimates

Varian Medical Systems Inc. (VAR) reported that its third-quarter net earnings attributable to the company increased to $61.2 million or $0.67 per share from $29.4 million or $0.32 per share in the prior year.

The latest-quarter results included a $21 million gain on an equity investment that went public, a $14 million workforce restructuring charge and a $9 million impairment of its available-for-sale investments.

The prior year results included a $51 million goodwill impairment charge related to its Proton Solutions business and a $21 million charge associated with the write-off of in-process research and development acquired in the CyberHeart acquisition.

Non-GAAP net earnings per share were $0.78 compared to $1.32 in the previous year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.52 per share for the quarter. Analysts' estimates typically exclude special items.

Total company revenues declined 16% in dollars and 15% in constant currency, to $694.3 million. Organic revenues were down 19%. Analysts expected revenue of $664.38 million for the quarter.

Earlier today, Varian Medical Systems said that it reached a deal to merge with German health group Siemens Healthineers AG (SMMNY.PK) in an all-cash transaction valued at $16.4 billion.

As per the terms of the agreement, Siemens Healthineers will acquire all outstanding shares of Varian for $177.50 per share in cash, representing a premium of about 24% to the closing price of Varian's common stock on July 31, 2020.

It expected that the transaction will close in the first half of calendar year 2021.

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