Stock Track | OSI Systems Soars 10% on Strong Q3 Results and Raised Guidance

Stock Track
01 May

OSI Systems Inc (NASDAQ: OSIS) shares are soaring 10% in pre-market trading on Thursday following the release of impressive fiscal 2025 third-quarter results and an upward revision to the company's full-year guidance.

The security, healthcare, and optoelectronics manufacturer reported Q3 adjusted earnings per share of $2.44, surpassing the analyst consensus of $2.40. Revenue for the quarter came in at $444.4 million, beating expectations of $436.5 million and representing a 10% year-over-year increase. The company's performance was driven by strong showings in its Security and Optoelectronics and Manufacturing divisions.

Ajay Mehra, OSI Systems' President and CEO, stated, "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." The Security division, in particular, saw a 10% year-over-year increase in revenues, while the Optoelectronics and Manufacturing division reported a robust 15% growth with strong operating margin expansion.

Adding to the positive sentiment, OSI Systems raised its fiscal 2025 outlook. The company now expects full-year revenues between $1.690 billion and $1.715 billion, up from the previous guidance of $1.685 billion to $1.710 billion. Non-GAAP diluted earnings per share are projected to be in the range of $9.15 to $9.45, an increase from the earlier forecast of $9.10 to $9.40.

Investors are responding enthusiastically to the company's strong performance and optimistic outlook, driving the stock significantly higher in pre-market trading. With a record Q3 backlog of over $1.8 billion and positive momentum across its key divisions, OSI Systems appears well-positioned for continued growth in the coming quarters.

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