OSI Systems slightly beats Q3 revenue estimates, maintains FY revenue forecast

Overview

• US electronic systems maker's fiscal Q3 revenue rose 2%, slightly beating analyst expectations

• Record non-GAAP EPS of $2.60, up 7% yr/yr; GAAP EPS fell 3% to $2.33

• Company posted record Q3 backlog of $1.9 bln

Outlook

• OSI Systems reiterates fiscal 2026 revenue guidance of $1.825 bln to $1.867 bln

• Company maintains fiscal 2026 non-GAAP diluted EPS guidance of $10.30 to $10.55

• OSI Systems says Department of Homeland Security shutdown and Middle East conflicts may impact near-term bookings

Result Drivers

• SECURITY DIVISION EXECUTION - Co said Security division delivered solid results with strong bookings and operating margin expansion, excluding a large prior-year Mexico contract

• OPTOELECTRONICS & MANUFACTURING GROWTH - Co said Optoelectronics and Manufacturing division posted 10% revenue growth and a strong book-to-bill ratio, benefiting from its vertically integrated global model

• RECORD BACKLOG - Co reported record Q3 backlog of $1.9 bln, reflecting continued strong bookings momentum

Company press release: ID:nBw4MwYCXa

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "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 $315.00, about 11.5% above its May 1 closing price of $282.50

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 23 three months ago

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