Investing.com - Varian Medical Systems (NYSE:VAR) on Monday reported second-quarter earnings that missed, but revenue that topped expectations as the impact from Covid-19 spread to across its businesses beyond the Asia-Pacific region.
Varian shares gained 1.86% in after-hours trade following the report.
Varian announced earnings per share of $0.85 on revenue of $794.5 million. Analysts polled by Investing.com anticipated EPS of $0.93 on revenue of $778.94 million. That compared with an EPS of $1.05 on revenue of $779.4 million in the same period a year before. Varian had reported EPS of $1.16 on revenue of $828.9 million in the previous quarter.
Oncology systems, its largest segment, saw revenues grow just 2% to $761 million year-on-year during the quarter.
"The company estimates the operational delays after March 9 negatively impacted revenues in those two geographies by approximately $30 million. This was partially offset by better performance across Asia-Pacific during the last three weeks of the quarter as China and South Korea began to recover from the pandemic," the company said.
"Between March 9 and the end of the quarter, the pandemic spread and impacted the company's operating performance in the Americas and EMEA (Europe, Middle East, India, and Africa) geographies," the company said. In March, The company said coronavirus disruptions were limited to the Asia-Pacific geography.
Varian shares are down 19% from the beginning of the year, still down 23.78% from its 52 week high of $150.06 set on January 22. They are under-performing the S&P 500 which is down 12.39% year to date.
Analysts are expecting EPS of $0.8 and revenue of $659.28M in the upcoming quarter.
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