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OSI Systems (OSIS) to Report Q4 Earnings: What's in Store?

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OSI Systems (OSIS - Free Report) is set to release fourth-quarter fiscal 2019 results on Aug 26.

Notably, the company surpassed the Zacks Consensus Estimate in the trailing four quarters, with the average being 24.2%.

In the last reported quarter, OSI Systems reported earnings of $1.17 per share that beat the Zacks Consensus Estimate by 23 cents. Revenues of $304.3 million also surpassed the consensus mark of $290 million.

The Zacks Consensus Estimate for fourth-quarter fiscal 2019 revenues currently stands at $303.7 million, indicating growth of 5.7% from the year-ago quarter reported figure. Moreover, the consensus mark for earnings has remained steady at $1.05 over the past 30 days, implying growth of 2.9% from the figure reported in the year-ago quarter.

Key Wins in Q4

OSI Systems is benefiting from strong demand for its security solutions that are likely to drive the top line in the to-be-reported quarter.

The strong demand results from the fact that security remains a top priority for governments across the globe. Demand for equipment and related services is strong in key markets like airports port security and correctional centers.

OSI Systems, Inc. Price and EPS Surprise

OSI Systems, Inc. Price and EPS Surprise

OSI Systems, Inc. price-eps-surprise | OSI Systems, Inc. Quote

In the to-be-reported quarter, the company won a number of contracts. In April, OSI Systems security division received an order worth roughly $10 million to provide multiple units of its RTT 110 (Real Time Tomography) explosive detection system that will be installed at a prominent European airport for screening passengers’ checked baggage.

OSI Systems’ security division was awarded a multi-year U.S. state contract, valued at roughly $5 million, to provide service and maintenance support for checkpoint inspection systems installed at correctional facilities and detection centers.

The security division also won a three-year contract worth $28 million from U.S.-based prime contractor, Huntington Ingalls Industries. The company will provide service maintenance, training, sustaining engineering and logistic support for multiple platforms of baggage, parcel and cargo inspection systems.

Although the aforesaid contract wins and awards will not materially impact fourth-quarter fiscal 2019 results, they reflect the strength of OSI Systems’ portfolio and an expanding customer base.

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has a good chance of beating estimates. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.

OSI Systems has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Stocks With the Favorable Combination

Here are some stocks you may want to consider, as our model shows these have the right combination of elements to post an earnings beat.

Smartsheet (SMAR - Free Report) has an Earnings ESP of +11.11% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Verint Systems (VRNT - Free Report) has an Earnings ESP of +3.49% and a Zacks Rank #3.

lululemon athletica (LULU - Free Report) has an Earnings ESP of +0.5% and a Zacks Rank #3.

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