Varian Medical Systems Inc., which makes equipment and software used to treat cancer, said Wednesday its profit rose 22 percent in the fiscal first quarter on greater oncology system and x-ray revenue.
Varian earned $96.5 million, or 80 cents per share, in the quarter ended in December, up from $78.8 million, or 63 cents per share, in the first quarter of fiscal 2010. Revenue increased 7 percent to $579.9 million from $540.9 million.
Analysts expected a profit of 73 cents per share and $584.4 million in revenue, according to FactSet.
The company said its oncology revenue rose 5 percent to $452 million because of strong demand in North America. Revenue in Europe sales also improved, but sales in Japan fell sharply because a two-year stimulus program ended in March. Revenue from X-ray products grew 22 percent $112 million. Other revenue fell 19 percent to $16 million.
Varian boosted its fiscal 2011 profit forecast to a range of $3.39 to $3.45 per share, up from $3.34 to $3.39 per share. It believes revenue will grow 10 to 11 percent, to a range of $2.59 billion to $2.62 billion. On average analysts are expecting net income of $3.39 per share and $2.59 billion in revenue.
For the second fiscal quarter, Varian forecast earnings per share of 83 to 86 cents and revenue growth of 9 to 10 percent, which suggests a total of $638.3 million to $644.2 million. Analysts expect a profit of 83 cents per share and $637.2 million in revenue.
Shares of Varian Medical Systems fell $2.06, or 2.9 percent, to $69.90 in aftermarket trading. The stock rose 65 cents to $71.96 during the day.