OSI Systems' (OSIS) Prospects Ride on Expanding Order Book
OSI Systems OSIS is benefiting from an expanding order book across its Healthcare, Optoelectronics and Manufacturing, and Security segments. The company, renowned for its cutting-edge solutions, has secured a series of substantial contracts across its divisions, showcasing its versatility and prowess in diverse industries.
OSI Systems’ Healthcare division, Spacelabs Healthcare, recently clinched an order valued at around $6 million. This order encompasses patient monitoring solutions and associated accessories for a prominent U.S.-based hospital. The inclusion of state-of-the-art technologies like Xhibit Central Stations and Xprezzon patient monitors underscores OSI Systems’ commitment to advancing patient care through sophisticated monitoring systems.
OSI Systems’ Security division garnered a $5 million order to deploy advanced CT security screening systems at a major European airport. This deployment of 920CT baggage screening technology reflects the company's dedication to enhancing security infrastructure and optimizing passenger screening processes for a seamless travel experience.
Further amplifying its presence in the security sector, OSI Systems has secured a substantial international contract valued at approximately $100 million. This contract encompasses the provision of cargo and vehicle inspection systems, along with comprehensive maintenance services and training.
In the arena of medical technology, OSI Systems’ Optoelectronics and Manufacturing division has received an order worth approximately $15 million. This order entails the supply of critical electronic sub-assemblies for a renowned healthcare original equipment manufacturer known for its innovative medical solutions.
OSI Systems, Inc. Price and Consensus
OSI Systems, Inc. price-consensus-chart | OSI Systems, Inc. Quote
OSI Systems’ Prospects Strong
OSIS shares have gained 10.1% year to date, outperforming the Zacks Electronics – Miscellaneous Components industry’s growth of 1.8%.
OSI Systems exited second-quarter fiscal 2024 with a backlog of nearly $1.8 billion, particularly in the Security and Optoelectronics and Manufacturing divisions. The company expects more robust performance from the Security division in the rest of fiscal 2024.
The strong order book is expected to benefit top-line growth. For fiscal 2024, revenues are expected to increase more than 19% over fiscal 2023, while earnings are expected to increase more than 29% year over year.
The Zacks Consensus Estimate for fiscal 2024 revenues stands at $1.52 billion, indicating 19.14% growth from 2023. The consensus estimate for earnings is pegged at $8.03 per share, unchanged over the past 30 days and indicating year-over-year growth of 29.31%.
Zacks Rank & Stocks to Consider
Currently, OSI Systems carries a Zacks Rank #3 (Hold).
NVIDIA NVDA, Veeva Systems VEEV and Synopsys SNPS are some better-ranked stocks in the broader sector, each flaunting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Year to date, shares of NVDA, VEEV and SNPS have gained 71.8%, 11.4% and 10.4%, respectively.
Long-term earnings growth rates for NVIDIA, Veeva and Synopsys are currently pegged at 30.93%, 24.09% and 17.51%, respectively.
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