OSI Systems Q2 revenue rises 11%, beats estimates

Overview

• Specialized electronics maker's fiscal Q2 revenue rose 11%, beating analyst expectations

• GAAP EPS for fiscal Q2 remained flat yr/yr at $2.22

• Company raised fiscal 2026 non-GAAP EPS guidance, anticipating 10%-13% growth

Outlook

• Company raises fiscal 2026 non-GAAP EPS guidance to $10.30 - $10.55

• OSI Systems maintains fiscal 2026 revenue guidance

• Company anticipates strong bookings in second half of fiscal year

Result Drivers

• SECURITY DIVISION - 15% revenue growth driven by expanding services revenue, despite softer bookings due to U.S. government shutdown

• OPTOELECTRONICS AND MANUFACTURING - 12% revenue growth attributed to operational efficiency and increasing customer demand

• CONVERTIBLE NOTES FINANCING - Completed financing expected to lower cost of capital and support growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electronic equipment & parts peer group is "buy"

• Wall Street's median 12-month price target for OSI Systems Inc is $296.00, about 9.1% above its January 28 closing price of $271.39

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release: ID:nBwblks0qa

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