Varian Medical Systems (NYSE: VAR) reported earnings on Jan. 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 30 (Q1), Varian Medical Systems met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue improved, and earnings per share dropped slightly.

Margins contracted across the board.

Revenue details
Varian Medical Systems booked revenue of $625.3 million. The 12 analysts polled by S&P Capital IQ expected revenue of $633.1 million. Sales were 7.8% higher than the prior-year quarter's $579.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.79. The 14 earnings estimates compiled by S&P Capital IQ averaged $0.75 per share. GAAP EPS of $0.79 for Q1 were 1.3% lower than the prior-year quarter's $0.80 per share.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 43%, 300 basis points worse than the prior-year quarter. Operating margin was 20.6%, 300 basis points worse than the prior-year quarter. Net margin was 14.4%, 220 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $713.3 million. On the bottom line, the average EPS estimate is $1.00.

Next year's average estimate for revenue is $2.85 billion. The average EPS estimate is $3.98.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 384 members out of 399 rating the stock outperform, and 15 members rating it underperform. Among 135 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 134 give Varian Medical Systems a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Varian Medical Systems is outperform, with an average price target of $69.93.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.