Varian Medical gained $13.96, or 12.4%, to $127.01, while the S&P 500 closed up 1.71 points, or 0.06%, to 2839.25.
The medical device and tech maker said it earned $1.06 a share on revenue that rose 12.8% year over year to $678.5 million. Analysts were expecting earnings per share of 93 cents on revenue of $634 million.
For the full year, Varian said it expects to earn between $4.24 and $4.36 a share, above the $4.22 consensus. It sees revenues between $2.77 billion to $2.85 billion, also above the $2.75 billion average analyst estimate.
However, not everyone is bullish about Varian: Goldman Sachs Isaac Ro and his team cut the stock to Sell, with a $98 price target today. Ro expects competition to grow, while Varian faces limited upside from new products and less attractive end markets than its peers. He also warns that the company’s long-term guidance looks too optimistic, especially given mixed execution, and its valuation is worrying.
Varian is up 9.3% year to date, and has gained nearly 40% in the past year.
Newell lost $6.42, or 20.6%, to $24.81.
Newell said it now expects to earn between $2.72 and $2.76 in fiscal 2017, down from the previous range of $2.80 to $2.85, and below the $2.82 consensus. For fiscal 2018, it’s looking for EPS of $2.65 to $2.85, also below the $2.94 average analyst estimate.
The news overshadowed Newell’s announcement that it is exploring a number of strategic initiatives to enhance shareholder value and boost its transformation plan.
Barclays’ Lauren Lieberman and her team downgraded Newell from Overweight to Equal Weight today on the news, and lowered their price target from $35 to $26. “Put simply, we’ve lost confidence,” Lieberman writes, and she warns that there’s too much uncertainty surrounding the stock for her to stay bullish.
Newell is up 2.4% year to date this year but is down 0.3% % in the past 12 months.