Varian Medical Systems (NYSE: VAR) reported earnings on Jan. 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 28 (Q1), Varian Medical Systems met expectations on revenues and beat slightly on earnings per share.

Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew.

Margins dropped across the board.

Revenue details
Varian Medical Systems reported revenue of $678.4 million. The 12 analysts polled by S&P Capital IQ expected net sales of $676.1 million on the same basis. GAAP reported sales were 8.5% higher than the prior-year quarter's $625.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.89. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.87 per share. GAAP EPS of $0.86 for Q1 were 8.9% higher than the prior-year quarter's $0.79 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 42.9%, 10 basis points worse than the prior-year quarter. Operating margin was 20.3%, 30 basis points worse than the prior-year quarter. Net margin was 14.0%, 40 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $774.3 million. On the bottom line, the average EPS estimate is $1.04.

Next year's average estimate for revenue is $3.04 billion. The average EPS estimate is $4.13.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 388 members out of 403 rating the stock outperform, and 15 members rating it underperform. Among 123 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 121 give Varian Medical Systems a green thumbs-up, and two 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 $72.71.

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