Earnings Preview: OSI Systems

OSI Systems OSIS is set to give its latest quarterly earnings report on Thursday, 2024-10-24. Here's what investors need to know before the announcement.

Analysts estimate that OSI Systems will report an earnings per share (EPS) of $1.07.

The announcement from OSI Systems is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Performance in Previous Earnings

Last quarter the company beat EPS by $0.05, which was followed by a 2.77% drop in the share price the next day.

Here's a look at OSI Systems's past performance and the resulting price change:

Tracking OSI Systems's Stock Performance

Shares of OSI Systems were trading at $140.59 as of October 22. Over the last 52-week period, shares are up 24.53%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Insights on OSI Systems

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on OSI Systems.

Analysts have provided OSI Systems with 4 ratings, resulting in a consensus rating of Buy. The average one-year price target stands at $175.75, suggesting a potential 25.01% upside.

Analyzing Ratings Among Peers

The analysis below examines the analyst ratings and average 1-year price targets of PAR Technology, Crane NXT and NAPCO Security Techs, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• PAR Technology received a Buy consensus from analysts, with an average 1-year price target of $64.71, implying a potential 53.97% downside.
• The consensus outlook from analysts is an Outperform trajectory for Crane NXT, with an average 1-year price target of $87.33, indicating a potential 37.88% downside.
• The consensus among analysts is an Buy trajectory for NAPCO Security Techs, with an average 1-year price target of $57.33, indicating a potential 59.22% downside.

Analysis Summary for Peers

In the peer analysis summary, key metrics for PAR Technology, Crane NXT and NAPCO Security Techs are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

OSI Systems ranks at the top for Revenue Growth among its peers. It is in the middle for Gross Profit and Return on Equity.

Delving into OSI Systems's Background

OSI Systems Inc is a designer and manufacturer of electronic systems and components for businesses in the homeland security, healthcare, defense, and aerospace markets. The firm is organized in three business segments: Security, which derives maximum revenue, provides security and inspection systems; Healthcare, which provides patient monitoring, diagnostic, cardiology, ventilation systems and defibrillators; and Optoelectronics and Manufacturing, which provides specialized electronic components and manufacturing services for the Security and Healthcare segments and external original equipment manufacturers. Majority of the firm's revenue is generated in the United States, and the rest from Mexico, Europe, the Middle East, and Africa, and the Asia Pacific regions.

OSI Systems: A Financial Overview

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: OSI Systems's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 16.76%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Net Margin: OSI Systems's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 9.29% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): OSI Systems's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 5.33%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 2.37%, the company showcases effective utilization of assets.

Debt Management: OSI Systems's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.6, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

To track all earnings releases for OSI Systems visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.