OSIS

It has been about a month since the last earnings report for OSI Systems (OSIS). Shares have lost about 9.7% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is OSI due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers. OSI Systems posted third-quarter fiscal 2026 earnings that topped expectations on steady execution in its two largest divisions. Adjusted earnings were $2.60 per share, up 6.6% year over year and 2.8% above the Zacks Consensus Estimate of $2.53.Revenues were $453 million, up 2% from the year-ago quarter and 0.4% ahead of the consensus mark of $451 million. Backlog ended the quarter at a record $1.9 billion, underscoring demand visibility across the portfolio. Management pointed to strong bookings momentum during the quarter, supported by awards in both Security and Optoelectronics and Manufacturing. A key highlight was a homeland defense Undefinitized Contract Action with a not-to-exceed value of about $235 million tied to an over-the-horizon radar transmit subsystem.The company also cited several international wins for cargo and vehicle inspection systems and airport screening solutions. While some Middle East activity was delayed by logistics and travel constraints, management framed the impact as timing-related and noted demand could strengthen once conditions stabilize. Security revenues were $319.3 million, as higher service revenues, stronger aviation product sales and increased RF contributions offset a sharp step-down in Mexico contract revenues. Mexico’s Security revenues fell to $11 million from $69 million in the prior-year period, creating the toughest comparison in fiscal 2026.Excluding the Mexico contracts in both periods, Security revenues increased 25% year over year, reflecting strength across services, aviation and RF-engineered solutions. U.S. order activity was affected by a Department of Homeland Security shutdown that delayed procurement, with management expecting ordering patterns to normalize after the shutdown ended. Optoelectronics and Manufacturing revenues were $111.0 million, up 10% year over year and a quarterly record for the division, according to...

As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the specialized technology industry, including OSI Systems (NASDAQ:OSIS) and its peers. Companies in this sector, especially if they invest wisely, could see demand tailwinds as the world moves towards more IoT (Internet of Things), automation, and analytics. Enterprises across most industries will balk at taking these journeys solo and will enlist companies with expertise and scale in these areas. However, headwinds could include rising competition from larger technology firms, as digitization lowers barriers to entry in the space. Additionally, companies in the space will likely face evolving regulatory scrutiny over data privacy, particularly for surveillance and security technologies. This could make companies have to continually pivot and invest. The 8 specialized technology stocks we track reported a very strong Q1. As a group, revenues beat analysts’ consensus estimates by 4.2% while next quarter’s revenue guidance was in line. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.2% since the latest earnings results. With security scanners deployed at airports and borders worldwide and patient monitors used in hospitals across the globe, OSI Systems (NASDAQ:OSIS) designs and manufactures specialized electronic systems for security screening, patient monitoring, and optoelectronic applications. OSI Systems reported revenues of $453.2 million, up 2% year on year. This print exceeded analysts’ expectations by 1.4%. Despite the top-line beat, it was still a mixed quarter for the company with a narrow beat of analysts’ revenue estimates and full-year EPS guidance in line with analysts’ estimates. The stock is down 6.6% since reporting and currently trades at $222.08. Is now the time to buy OSI Systems? Access our full analysis of the earnings results here, it’s free. Founded in 1981 when computer vision was in its infancy, Cognex (NASDAQ:CGNX) develops machine vision systems and software that help manufacturers and logistics companies automate quality inspection and tracking of products. Cognex reported revenues of $268.4 million, up 24.3% year on year, outperforming analysts’ expectations by 9.3%. The business had an incredible quarter with a beat of analysts’ EPS and revenue estimates. Cognex delivered the biggest a...

OSI Systems (OSIS) is positioned to deliver its 10th and 11th consecutive years of adjusted EPS grow

OSI Systems delivered Q1 results that beat Wall Street’s revenue expectations, with sales growth driven primarily by its Security and Optoelectronics divisions. Management attributed the quarter’s performance to higher service revenues, international demand, and significant new contract wins, particularly in the RF and Homeland Defense segments. CEO Ajay Mehra emphasized that while the company faced timing-related delays from a U.S. government shutdown and Middle East conflicts, these factors did not reflect changes in underlying demand. The healthcare division, however, saw softer sales due to order timing in the U.S., which impacted profitability. Is now the time to buy OSIS? Find out in our full research report (it’s free). Revenue: $453.2 million vs analyst estimates of $447.1 million (2% year-on-year growth, 1.4% beat) Adjusted EPS: $2.60 vs analyst estimates of $2.54 (2.3% beat) Adjusted EBITDA: $76.41 million vs analyst estimates of $74.92 million (16.9% margin, 2% beat) Management reiterated its full-year Adjusted EPS guidance of $10.43 at the midpoint Operating Margin: 11.7%, in line with the same quarter last year Backlog: $1.9 billion at quarter end, up 5.6% year on year Market Capitalization: $3.80 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Lawrence Scott Solow (CJS Securities) asked about the sources of 25% growth outside Mexico and the role of product mix. CFO Alan Edrick explained most growth came from international service, aviation, and RF revenues, with U.S. activity expected to pick up post-shutdown. Christopher Glynn (Oppenheimer) questioned the sustainability of service revenue growth and its margin impact. Edrick responded that while growth rates may fluctuate by quarter, service revenues are expected to grow and carry higher margins than product sales. Michael Joshua Nichols (B. Riley) inquired about the Homeland Defense contract and further large opportunities related to Shield. CEO Ajay Mehra highlighted the company’s technical expertise and noted optimism but did not quantify the pipeline. Bradley Eister (Citi) asked about airport security demand and potential impacts from glob...

HAWTHORNE, Calif. (AP) — HAWTHORNE, Calif. (AP) — OSI Systems Inc. (OSIS) on Monday reported fiscal third-quarter earnings of $40.2 million. On a per-share basis, the Hawthorne, California-based company said it had net income of $2.33. Earnings, adjusted for one-time gains and costs, came to $2.60 per share. The results exceeded Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of $2.53 per share. The airport security and full-body scanner manufacturer posted revenue of $453.2 million in the period, which also topped Street forecasts. Five analysts surveyed by Zacks expected $451.4 million. OSI expects full-year earnings in the range of $10.30 to $10.55 per share, with revenue in the range of $1.83 billion to $1.87 billion. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on OSIS at https://www.zacks.com/ap/OSIS

OSI Systems (OSIS) reported $453.25 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 2%. EPS of $2.60 for the same period compares to $2.44 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $451.45 million, representing a surprise of +0.4%. The company delivered an EPS surprise of +2.7%, with the consensus EPS estimate being $2.53. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how OSI performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenues- Healthcare division: $40.7 million versus the three-analyst average estimate of $41.91 million. The reported number represents a year-over-year change of -6.9%. Revenues- Intersegment eliminations: $-17.72 million versus $-17 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +17.1% change. Revenues- Optoelectronics and Manufacturing division, including intersegment revenues: $111 million versus the three-analyst average estimate of $110.29 million. The reported number represents a year-over-year change of +10.1%. Revenues- Security division: $319.26 million versus the three-analyst average estimate of $317.02 million. The reported number represents a year-over-year change of +1.4%. Non-GAAP basis Operating Income (loss)- Security Division: $58.29 million versus the two-analyst average estimate of $56.33 million. Non-GAAP basis Operating Income (loss)- Corporate/Elimination: $-10.91 million compared to the $-10.35 million average estimate based on two analysts. Non-GAAP basis Operating Income (loss)- Healthcare Division: $0.54 million versus $1.7 million estimated by two analysts on average. Non-GAAP basis Operating Income (loss)- Optoelectronics and Manufacturing Division: $14.96 million versus $14.85 million estimated by two analysts on average. View all Key Company Metrics for OSI here...

OSI Systems (OSIS) came out with quarterly earnings of $2.6 per share, beating the Zacks Consensus Estimate of $2.53 per share. This compares to earnings of $2.44 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +2.70%. A quarter ago, it was expected that this airport security and full-body scanner manufacturer would post earnings of $2.52 per share when it actually produced earnings of $2.58, delivering a surprise of +2.38%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. OSI, which belongs to the Zacks Electronics - Miscellaneous Components industry, posted revenues of $453.25 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.40%. This compares to year-ago revenues of $444.35 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. OSI shares have added about 10.8% since the beginning of the year versus the S&P 500's gain of 5.6%. While OSI has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for OSI was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Z...

Achieved record fiscal Q3 revenue of $453 million despite a significant year-over-year headwind from the transition of Mexico contracts from product sales to service-based revenue. Security division growth reached 25% when excluding Mexico contracts, driven by strong performance in aviation, service agreements, and the integrated RF business. The Optoelectronics division posted record Q3 results with 10% growth, benefiting from a vertically integrated global manufacturing model that attracts customers diversifying away from China. Performance in the Healthcare division remained soft due to domestic order timing, though management notes that its high contribution margins mean modest growth will significantly impact future profitability. The company reached a record backlog of $1.9 billion, supported by a 1.3 book-to-bill ratio and a major $235 million Homeland Defense award for radar transmit subsystems. Operational efficiency improved as combined SG&A and R&D expenses as a percentage of sales decreased for the eighth consecutive year. Management maintained fiscal 2026 guidance, assuming that recent DHS shutdown delays and Middle East conflict disruptions represent timing shifts rather than structural demand changes. The revenue headwind from the Mexico contract transition is expected to diminish in Q4 and largely roll off as the company enters fiscal 2027. Anticipate substantial cash flow and strong free cash flow conversion in upcoming periods following the post-quarter collection of $74 million in Mexico receivables. Strategic positioning for the 'One Big Beautiful Bill' and upcoming high-profile events like the 2026 FIFA World Cup and 2028 Olympics are expected to drive medium-term U.S. security demand. Management expressed optimism for fiscal 2027, citing a strong backlog and robust opportunity pipeline. Key drivers include growth in RF engineered solutions and the company's existing participation in the $151 billion Shield IDIQ initiative. Middle East conflict has introduced logistics constraints and travel restrictions, delaying certain programs and potentially impacting near-term project completion timelines. The recent DHS shutdown in the U.S. delayed procurement for border initiatives and the deployment of funds from the $1 billion NII equipment bill during Q3. Gross margins faced slight pressure (33% vs 33.5% YoY) as a less favorable product revenu...

OSI Systems reported record fiscal Q3 results with $453 million in revenue, $2.60 non-GAAP EPS, a 1.3 book-to-bill ratio and an all-time high backlog of about $1.9 billion. The Security segment is transitioning from Mexico product sales to services—Mexico revenue fell to $11 million from $69 million, but excluding Mexico Security revenue grew 25% year-over-year; OSI is gaining RF momentum, reporting a record $38 million in RF revenue and winning a not-to-exceed ~$235 million UCA for an Over-the-Horizon Radar project while participating in the $151 billion SHIELD IDIQ. On cash and guidance, OSI collected roughly $74 million from its largest Mexico customer after quarter-end, finished Q3 with $345 million in cash and net leverage ~2.2, and maintained fiscal 2026 revenue and EPS guidance despite potential near-term timing impacts from the DHS shutdown and Middle East conflicts. Interested in OSI Systems, Inc.? Here are five stocks we like better. OSI Systems (NASDAQ:OSIS) reported fiscal 2026 third-quarter results that management said set company records across several metrics, despite what Chief Financial Officer Alan Edrick described as the “most challenging year-over-year comparison” of the fiscal year. The comparison was influenced largely by the company’s Mexico security contracts shifting from significant product sales to long-term service and support revenue. Edrick said OSI Systems delivered fiscal Q3 revenue of $453 million, a record for the third quarter, and non-GAAP earnings per diluted share of $2.60, also a fiscal Q3 record. He added that bookings produced a 1.3 book-to-bill ratio, driven by both the Security and Optoelectronics and Manufacturing businesses, resulting in a record backlog. → Roblox Stock Slides to New Low as Safety Changes Weigh on Outlook President and CEO Ajay Mehra put the ending backlog at approximately $1.9 billion, calling it “the highest in the company’s history.” Management emphasized execution going into fiscal Q4 and into fiscal 2027, supported by backlog visibility and a pipeline of opportunities. Security division revenue was $319 million in the quarter, which Edrick said was driven by higher service revenues, increased contribution from the company’s RF business, and higher aviation product revenues. He noted that revenue from the large Mexico security contracts fell to $11 million in fiscal Q3 2026 from $69 million in...

OSI Systems (OSIS) reported fiscal Q3 non-GAAP net income late Monday of $2.60 per diluted share, up

Image source: The Motley Fool. Thursday, Oct. 24, 2024 at 12 p.m. ET Chairman & Chief Executive Officer — Deepak Chopra Executive Vice President & Chief Financial Officer — Alan Edrick I will begin with a high-level summary of our financial performance for the third quarter of fiscal ‘25, and then turn the call over to Deepak for a discussion of our business and our operational performance. We will then finish with more detail regarding our financial results and a discussion of our updated outlook for fiscal year '25. Following our fiscal '24 financial, featuring record revenues and non-GAAP EPS, we started fiscal '25 by posting record Q1 financial results, led by the Security division, resulting in robust year-over-year revenue growth and a significant increase in year-over-year operating income. We are encouraged by the momentum reflected in our Q1 financial performance. So, I'll start with a high-level summary of our fiscal '25 Q1 results. First, revenues increased 23% year-over-year to a Q1 record of $344 million, driven by the performance in our Security division, where Q1 revenues were up 36% year-over-year. Second, the significant revenue growth led to record Q1 non-GAAP adjusted earnings per share of $1.25. Third, bookings were again solid, and we ended the quarter with a backlog of approximately $1.8 billion. Our healthy backlog and robust pipeline of opportunities provide good visibility going forward. Fourth, we completed a convertible debt financing in July, raising gross proceeds of $350 million, which reduced our weighted average cost of borrowings and was immediately accretive. Concurrent with this transaction, we repurchased approximately 531,000 shares of our common stock. And finally, in September, we completed a strategic bolt-on acquisition in our Security division. While the acquired business did not significantly enhance our Q1 revenues, this deal is expected to be accretive to fiscal '25 non-GAAP earnings per share. Before diving more deeply into our financial results, and discussing the updated fiscal '25 outlook, I will turn the call over to Deepak. Deepak Chopra: Thank you, Alan, and good morning to everybody, and afternoon. I'm pleased with the company's robust fiscal 2025 first quarter performance. As Alan mentioned, we achieved an impressive 23% revenue growth, leading to a higher year-over-year operating margin. We closed the qu...

Security and healthcare technology company OSI Systems (NASDAQ:OSIS) will be reporting results this Monday afternoon. Here’s what to expect. OSI Systems beat analysts’ revenue expectations last quarter, reporting revenues of $464.1 million, up 10.5% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates. Is OSI Systems a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members. This quarter, the market is expecting OSI Systems’s revenue to be flat year on year, slowing from the 9.6% increase it recorded in the same quarter last year. The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. OSI Systems rarely misses Wall Street’s revenue estimates. Looking at OSI Systems’s peers in the tech hardware & electronics segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Mirion delivered year-on-year revenue growth of 27.5%, beating analysts’ expectations by 5.2%, and TD SYNNEX reported revenues up 18.1%, topping estimates by 9.5%. Mirion’s stock price was unchanged after the resultswhile TD SYNNEX was up 16.3%. Read our full analysis of Mirion’s results here and TD SYNNEX’s results here. There has been positive sentiment among investors in the tech hardware & electronics segment, with share prices up 10.1% on average over the last month. OSI Systems is up 2.9% during the same time and is heading into earnings with an average analyst price target of $306.43 (compared to the current share price of $282.35). WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it. This is what the early days of Palantir looked like before it became a $437 billion giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.