Varian Medical Systems (NYSE: VAR) reported earnings on April 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 29 (Q2), Varian Medical Systems beat slightly on revenues and beat slightly on earnings per share.

Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share increased. GAAP earnings per share shrank to zero.

Gross margins expanded, operating margins were steady, net margins shrank.

Revenue details
Varian Medical Systems booked revenue of $768.4 million. The 12 analysts polled by S&P Capital IQ expected to see a top line of $758.0 million on the same basis. GAAP reported sales were 100% lower than the prior-year quarter's $720.3 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 $1.04. The 15 earnings estimates compiled by S&P Capital IQ forecast $1.02 per share. Non-GAAP EPS of $1.04 for Q2 were 8.3% higher than the prior-year quarter's $0.96 per share. GAAP EPS dropped to zero from the prior-year quarter's $0.94.

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 41.6%, 40 basis points better than the prior-year quarter. Operating margin was 20.3%, much about the same as the prior-year quarter. Net margin was 14.7%, 30 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $767.6 million. On the bottom line, the average EPS estimate is $1.05.

Next year's average estimate for revenue is $3.04 billion. The average EPS estimate is $4.12.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 385 members out of 400 rating the stock outperform, and 15 members rating it underperform. Among 114 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 111 give Varian Medical Systems a green thumbs-up, and three 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 $76.06.

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