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OSI Systems' (OSIS) Prospects Ride on Expanding Order Book
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OSI Systems (OSIS - Free Report) is benefiting from an expanding order book across its Healthcare, Optoelectronics and Manufacturing, and Security segments.
Its Security division recently received an order from a leading global air cargo logistics provider for roughly $4 million. Under the deal, OSIS will provide advanced security inspection systems, including the Rapiscan RTT110 CT-based explosive detection system, the Rapiscan Orion 927DX and 935DX for large package screening and the Rapiscan Orion 920CX for small parcel screening.
The Security division is benefiting from the strong adoption of its solutions. It recently received a contract in the EMEA region worth roughly $59 million to provide various cargo and vehicle inspection platforms.
Under the deal, OSIS will offer the Eagle G60 high-energy, gantry-mounted cargo inspection system, Eagle P60 high-energy, drive-through cargo and vehicle inspection system, Eagle M60 high-energy mobile cargo and vehicle inspection system, CarView multi-technology, top-view passenger vehicle inspection system and Guardian VM500 Series radiation portal monitor.
OSI Systems is expected to integrate the inspection systems into a national command center through its CertScan integration platform and provide maintenance, training and service support as part of the contract.
OSIS shares have surged 41.4% in the trailing 12-month period, outperforming the Zacks Electronics – Miscellaneous Components industry’s growth of 0.6%.
OSI Systems exited first-quarter fiscal 2024 with a backlog of nearly $1.8 billion, particularly in the Security and Optoelectronics and Manufacturing divisions. The company also expects more robust performance from Healthcare in the rest of fiscal 2024.
The Security division has been awarded a contract valued at approximately $18 million from an international airport to provide various checkpoint and baggage screening solutions. The division received another contract worth roughly $5 million from a Latin American customer to provide cargo and vehicle inspection solutions, including installation and integration support.
Its Healthcare division, Spacelabs Healthcare, recently received an order valued at approximately $5 million. Spacelabs will install a range of patient monitoring tools, including the Rothman Index, SafeNSound, and Xhibit Central Stations with XTR Telemetry and Qube bedside patient monitors in a U.S.-based hospital.
The Healthcare segment is expected to benefit from an improving order book. In October, Spacelabs Healthcare received an order valued at roughly $4 million to provide patient monitoring solutions and related accessories to a U.S.-based hospital.
In early December, OSIS’ Optoelectronics and Manufacturing segment received orders totaling nearly $5 million to provide electronic assemblies to a leading technology OEM. In November, the segment received multiple orders for approximately $4 million in aggregate to provide missile guidance and detection components to a leading defense OEM.
The strong order book is expected to benefit top-line growth. For fiscal 2024, revenues are expected to increase more than 18% over fiscal 2023, while earnings are expected to increase more than 27% year over year.
The Zacks Consensus Estimate for fiscal 2024 revenues stands at $1.51 billion, indicating 17.83% year-over-year growth. The consensus estimate for earnings is pegged at $7.90 per share, unchanged over the past 30 days and indicating year-over-year growth of 27.21%.
Zacks Rank & Stocks to Consider
Currently, OSI Systems carries a Zacks Rank #3 (Hold).
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OSI Systems' (OSIS) Prospects Ride on Expanding Order Book
OSI Systems (OSIS - Free Report) is benefiting from an expanding order book across its Healthcare, Optoelectronics and Manufacturing, and Security segments.
Its Security division recently received an order from a leading global air cargo logistics provider for roughly $4 million. Under the deal, OSIS will provide advanced security inspection systems, including the Rapiscan RTT110 CT-based explosive detection system, the Rapiscan Orion 927DX and 935DX for large package screening and the Rapiscan Orion 920CX for small parcel screening.
The Security division is benefiting from the strong adoption of its solutions. It recently received a contract in the EMEA region worth roughly $59 million to provide various cargo and vehicle inspection platforms.
Under the deal, OSIS will offer the Eagle G60 high-energy, gantry-mounted cargo inspection system, Eagle P60 high-energy, drive-through cargo and vehicle inspection system, Eagle M60 high-energy mobile cargo and vehicle inspection system, CarView multi-technology, top-view passenger vehicle inspection system and Guardian VM500 Series radiation portal monitor.
OSI Systems is expected to integrate the inspection systems into a national command center through its CertScan integration platform and provide maintenance, training and service support as part of the contract.
OSI Systems, Inc. Price and Consensus
OSI Systems, Inc. price-consensus-chart | OSI Systems, Inc. Quote
OSI Systems’ Prospects Strong
OSIS shares have surged 41.4% in the trailing 12-month period, outperforming the Zacks Electronics – Miscellaneous Components industry’s growth of 0.6%.
OSI Systems exited first-quarter fiscal 2024 with a backlog of nearly $1.8 billion, particularly in the Security and Optoelectronics and Manufacturing divisions. The company also expects more robust performance from Healthcare in the rest of fiscal 2024.
The Security division has been awarded a contract valued at approximately $18 million from an international airport to provide various checkpoint and baggage screening solutions. The division received another contract worth roughly $5 million from a Latin American customer to provide cargo and vehicle inspection solutions, including installation and integration support.
Its Healthcare division, Spacelabs Healthcare, recently received an order valued at approximately $5 million. Spacelabs will install a range of patient monitoring tools, including the Rothman Index, SafeNSound, and Xhibit Central Stations with XTR Telemetry and Qube bedside patient monitors in a U.S.-based hospital.
The Healthcare segment is expected to benefit from an improving order book. In October, Spacelabs Healthcare received an order valued at roughly $4 million to provide patient monitoring solutions and related accessories to a U.S.-based hospital.
In early December, OSIS’ Optoelectronics and Manufacturing segment received orders totaling nearly $5 million to provide electronic assemblies to a leading technology OEM. In November, the segment received multiple orders for approximately $4 million in aggregate to provide missile guidance and detection components to a leading defense OEM.
The strong order book is expected to benefit top-line growth. For fiscal 2024, revenues are expected to increase more than 18% over fiscal 2023, while earnings are expected to increase more than 27% year over year.
The Zacks Consensus Estimate for fiscal 2024 revenues stands at $1.51 billion, indicating 17.83% year-over-year growth. The consensus estimate for earnings is pegged at $7.90 per share, unchanged over the past 30 days and indicating year-over-year growth of 27.21%.
Zacks Rank & Stocks to Consider
Currently, OSI Systems carries a Zacks Rank #3 (Hold).
BlackLine (BL - Free Report) , DigitalOcean (DOCN - Free Report) and Pinterest (PINS - Free Report) are some better-ranked stocks that investors can consider in the broader sector, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
DOCN and PINS shares have returned 28.8% and 39.1%, respectively, in the past 12 months. BL shares have declined 18.5%.
Long-term earnings growth rates for BlackLine, DigitalOcean and Pinterest are pegged at 50.56%, 31.26% and 35.87%, respectively.