Varian domestic orders flatten

July 16, 2004

Varian Medical Systems stock got clobbered July 14, dropping nearly $8 per share to about $67, after the company reported that orders for oncology equipment from North American customers were flat in the fiscal third quarter. The announcement was made

Varian Medical Systems stock got clobbered July 14, dropping nearly $8 per share to about $67, after the company reported that orders for oncology equipment from North American customers were flat in the fiscal third quarter. The announcement was made ahead of the scheduled July 29 earnings release in response to high-volume, volatile trading. The knee-jerk reaction to the announcement reflects the importance of the U.S. market, as it was swaddled in otherwise good news-an expected 30% jump in overall earnings on a 14% rise in sales per share for the third quarter compared with the previous year's period.