OSI Systems surges 8.4% on strong Q3 results, raised guidance

Published 01/05/2025, 16:36
OSI Systems surges 8.4% on strong Q3 results, raised guidance

Investing.com -- OSI Systems , Inc. (NASDAQ:OSIS) saw its shares jump 8.4% after the security and healthcare technology company reported better-than-expected third-quarter results and raised its full-year outlook.

For the fiscal third quarter ended March 31, 2025, OSI Systems posted adjusted earnings per share of $2.44, beating analyst estimates of $2.41. Revenue came in at $444 million, surpassing the consensus forecast of $437.07 million and representing a 10% YoY increase.

The company’s strong performance was driven by record-breaking results in its Security division and growth in its Optoelectronics and Manufacturing segment. OSI Systems ended the quarter with a record backlog of over $1.8 billion, providing high visibility into future opportunities.

"We are pleased to report a record-breaking third quarter for revenues, non-GAAP earnings and operating cash flow, led by excellent performance in the Security division and growth in the Optoelectronics and Manufacturing division," said Ajay Mehra, OSI Systems’ President and CEO.

Based on the robust results, OSI Systems raised its fiscal 2025 guidance. The company now expects full-year revenue between $1.69 billion and $1.715 billion, up from its previous forecast of $1.685 billion to $1.710 billion. Adjusted EPS guidance was increased to a range of $9.15 to $9.45, compared to the prior outlook of $9.10 to $9.40.

The Security division reported a 10% YoY revenue increase, while the Optoelectronics and Manufacturing division saw 15% revenue growth with strong operating margin expansion. The Healthcare division also showed sales growth in the quarter.

OSI Systems generated $81.6 million in operating cash flow during Q3, a significant improvement from the $52.1 million cash used in the same period last year.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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