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HAWTHORNE, Calif. - OSI Systems , Inc. (NASDAQ: NASDAQ:OSIS), a designer and manufacturer of specialized electronic systems with a market capitalization of $3.4 billion, has announced a significant new order for its Security division. The company will provide radio frequency (RF) based critical systems for long-range secure communications, with the contract valued at approximately $32 million. The deal also includes the company’s support for systems integration and deployment activities related to the project. According to InvestingPro data, OSI Systems has demonstrated strong momentum with a 53.48% return over the past year.
Ajay Mehra, President and CEO of OSI Systems, expressed the company’s enthusiasm for the award, highlighting the importance of RF-based communication and surveillance solutions in military infrastructure globally.
OSI Systems, with over four decades of experience in electronics engineering and manufacturing, operates in various sectors, including homeland security, healthcare, defense, and aerospace. The company’s expansion strategy focuses on targeted end-product markets, leveraging its international presence with offices and production facilities across multiple countries.
The announcement of this new order reflects OSI Systems’ continued engagement in providing advanced technology solutions for critical applications. It is important to note that while the company has shared its positive outlook on the collaboration, the press release also contains forward-looking statements. These statements are subject to uncertainties and risks, and actual results may differ materially from what is projected or implied.
Investors and interested parties should be aware that the information provided is based on a press release statement from OSI Systems and that forward-looking statements are not guarantees of future performance. They should also consider the inherent risks and uncertainties that could cause actual results to differ from those in the forward-looking statements.
The recent order showcases OSI Systems’ capability to secure and fulfill large-scale international contracts, further solidifying its position in the electronic systems market for critical applications.
In other recent news, OSI Systems reported a strong second quarter for fiscal year 2025, with earnings per share (EPS) of $2.42, surpassing analyst expectations of $2.33. The company also saw a 12% year-over-year increase in revenue, reaching $420 million, although this was below the forecasted $402 million. Following this earnings announcement, OSI Systems raised its revenue and EPS guidance for FY2025, projecting a revenue range of $1.685 billion to $1.710 billion and non-GAAP EPS between $9.10 and $9.40.
On the analyst front, JPMorgan initiated coverage of OSI Systems with a Neutral rating and a price target of $225, citing the company’s growth prospects in its Security division. Meanwhile, Oppenheimer raised its price target for the company from $205 to $225 and maintained an Outperform rating, highlighting a strong backlog and improved free cash flow. Additionally, OSI Systems has been advancing a $500 million project in Mexico, which is expected to contribute to growth in the first half of the fiscal year.
The company’s strategic focus on high-demand sectors, including recent wins in aviation markets, has been emphasized by analysts as a positive outlook for OSI Systems. Despite a slight decline in gross and operating margins, the company’s operational efficiency continues to position it well against competitors. These developments reflect ongoing investor confidence and a positive trajectory for OSI Systems in the coming quarters.
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