EU and US could reach trade deal this weekend - Reuters
HAWTHORNE, Calif. - OSI Systems, Inc. (NASDAQ:OSIS), a provider of specialized electronic systems for security applications, has been awarded a contract worth approximately $36 million. The agreement involves the deployment and maintenance of airport security screening solutions at a major international airport in the Middle East. The contract adds to OSI Systems’ strong momentum, with the company’s stock delivering a 63.58% return over the past year and currently trading near its 52-week high of $227.34. InvestingPro analysis reveals 11 additional bullish indicators for the company.
The contract stipulates the provision of OSI Systems’ advanced security technologies, including the Orion® 920CT Computed Tomography checkpoint screening system paired with the Rapiscan® Tray Return System (TRS™) for carry-on item inspection. Additionally, the Orion 935DX will be utilized for air cargo and pallet screening, while the Itemiser® 5X will be deployed to detect trace amounts of explosives and narcotics. The company will also offer ongoing maintenance and support for these systems throughout their operational lifecycle. With a market capitalization of $3.7 billion and a healthy current ratio of 2.11, OSI Systems demonstrates strong financial stability to support its operational commitments.
OSI Systems’ President and CEO, Ajay Mehra, remarked on the contract, noting the company’s commitment to enhancing airport operations and passenger safety with its security technologies. Mehra emphasized the importance of meeting global security standards while also improving efficiency.
OSI Systems has over four decades of experience in electronics engineering and manufacturing, with a presence in various countries. The company serves key markets in homeland security, healthcare, defense, and aerospace, offering a range of specialized electronic systems and components.
This announcement is based on a press release statement from OSI Systems, Inc. The forward-looking statements in the press release involve risks and uncertainties, and there is no assurance that the expected outcomes will be realized. Based on InvestingPro’s Fair Value analysis, OSI Systems appears to be trading above its Fair Value. For comprehensive insights and a detailed analysis of OSI Systems and 1,400+ other US stocks, access the Pro Research Report available on InvestingPro. The company has clarified that these statements are not guarantees of future performance and that actual results may differ materially. OSI Systems has not undertaken any obligation to update any forward-looking statements that may be revised due to new information, future events, or other factors.
In other recent news, OSI Systems reported its third-quarter earnings for fiscal year 2025, showcasing a robust financial performance that exceeded analyst expectations. The company posted a record non-GAAP adjusted earnings per share (EPS) of $2.44, surpassing the forecasted $2.41, and revenue also exceeded projections, totaling $444 million against an anticipated $437.07 million. This marked a 10% year-over-year revenue increase, highlighting strong growth across its divisions, including a notable 15% increase in the Optoelectronics division. Oppenheimer responded by raising its price target for OSI Systems to $260.00, citing the company’s strong backlog and maintaining an Outperform rating.
Additionally, OSI Systems secured a $76 million contract for an international airport project, the largest in its airport vertical to date, which underscores its competitive positioning in cargo installation projects. The company’s backlog reached a record $1.8 billion, with a book-to-bill ratio exceeding 1.0, reflecting robust demand. The firm also noted potential budgetary increases in U.S. border security spending, with proposals considering approximately $1.1 billion for U.S. Customs and Border Protection infrastructure, which could benefit OSI Systems’ market share.
Furthermore, the acquisition of an RF-based solutions business contributed $29 million to the quarter’s revenues, indicating strategic expansion. OSI Systems raised its fiscal 2025 revenue guidance to between $1.690 billion and $1.715 billion, with an increase in non-GAAP diluted EPS guidance, reflecting anticipated growth. The company emphasized its strategic focus on growing service revenue, supported by a growing installed base of security products, which is expected to drive future growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.