UPDATE 1-Varian Q3 profit beats estimates; raises FY EPS view

* Q3 EPS $0.74 vs est $0.64

* Q3 rev $578 mln vs est $570.1 mln

July 28 (Reuters) - Varian Medical Systems Inc (VAR.N) posted a better-than-expected quarterly profit, helped by higher demand in its oncology systems and x-ray products businesses, and raised its 2010 earnings outlook.

For the third quarter, the company, which provides software and equipment for cancer clinics, reported net income from continuing operations of 74 cents a share, compared with 68 cents a share, a year ago.

Revenue rose 13 percent to $578 million.

Analysts on average expected earnings of 64 cents a share, on revenue of $570.1 million, according to Thomson Reuters I/B/E/S.

Revenue from oncology systems were up 6 percent to $456 million, while revenue from X-ray tubes and digital detectors for filmless imaging rose 52 percent to $102 million.

The company raised its fiscal 2010 earnings outlook from continuing operations to $2.90 to $2.93 a share, and said it continues to expect full-year revenue to grow by 6 to 7 percent.

Analysts expect the company to earn $2.88 a share, on revenue of $2.36 billion in 2010.

The company had earlier forecast a profit of $2.82 to $2.88 a share. [ID:nSGE63R0LX].

Shares of the company closed at $54.63 Wednesday on the New York Stock Exchange. (Reporting by Krishnakali Sengupta in Bangalore; Editing by Maju Samuel)