OSI Systems Q1 revenue beats estimates; raises FY2027 profit outlook

Overview

• U.S. electronic systems maker's fiscal Q1 revenue rose 5%, beating analyst expectations

• Non-GAAP EPS for fiscal Q1 grew 17% year-over-year

• Company raised fiscal 2027 non-GAAP EPS guidance, reaffirmed revenue outlook

Outlook

• OSI Systems reaffirms fiscal 2027 revenue guidance of $1.875 bln to $1.930 bln

• Company raises fiscal 2027 non-GAAP EPS guidance to $11.28-$11.64 from $11.13-$11.49

• Company expects Security division revenue mix and operating margin to improve over the remainder of fiscal 2027

Result Drivers

• SECURITY DEMAND - Co said strong bookings reflected robust demand for security inspection and surveillance products, integrated solutions and services

• OPTOELECTRONICS SALES - Optoelectronics and Manufacturing division revenue rose 9% year-over-year including intersegment sales and 16% from external customers, benefiting from vertically integrated capabilities and broad customer relationships, per CEO Ajay Mehra

• HEALTHCARE DIVISION SOFTNESS - Healthcare division performance was soft in the quarter, but company expects improvement and a return to growth this fiscal year, per CEO Ajay Mehra

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electronic equipment & parts peer group is "buy"

• Wall Street's median 12-month price target for OSI Systems, Inc. is $279.00, about 39% above its October 28 closing price of $200.67

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 19 three months ago

Reuters Recommended Reads

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)