Shareholders are immensely happy with Varian Medical Systems' 2012 fourth-quarter earnings report. The maker of radiotherapy, radiosurgery and brachytherapy-related medical devices and software booked a big jump in revenue and net earnings, and investors responded by driving the stock price up more than 16% in late-morning trading.
By 11:30 a.m., the stock traded at $67.72, up $9.61.
Varian said it generated $756 million in total revenue during its fiscal 2012 fourth quarter, up 5% from the same period in fiscal 2011. Revenue for the 2012 fiscal year made a healthy 8% jump year-over-year, hitting $2.8 billion--all thanks to booming sales in the company's core oncology systems and X-ray products.
Overall, the company's net earnings from continuing operations hit $1.08 per diluted share in Q4, a 14% jump from the 95 cents per diluted share in the fiscal 2011 fourth quarter. For the year, net earnings per diluted share from continuing operations grew 9%, reaching $3.76, versus $3.44 in fiscal 2011.
"Our fourth-quarter performance ends what has been a challenging year on a positive note," Varian President and CEO Dow Wilson said in a statement. It caps the final year for former president and CEO Timothy Guertin, who retired at the end of September.
Varian has been aggressive in recent months in eyeing international markets to boost sales. The company is launching a South Korean subsidiary, its first in Asia. And Varian is working with Siemens Healthcare ($SI) in a deal that allows both to globally market each other's diagnostic and therapeutic products and related services.
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