OSI Systems Shares Are Trading Lower After Q3 Revenue Miss; Raised FY21 Guidance

OSI Systems Inc OSIS reported a third-quarter FY21 revenue decline of 3.1% year-on-year to $283.8 million, missing the analyst consensus of $290.51 million.
Security division revenue declined 19.1% to $151.4 million due to the pandemic, while Healthcare division revenue rose 18.3% to $54 million. Optoelectronics and Manufacturing division revenue increased 28.5% to $90.3 million.
Q3 backlog rose 23% from Jun. 30, 2020.
Non-GAAP net income rose 14.5% to $25.3 million. Non-GAAP EPS was $1.38, beating the consensus estimate of $1.33.
The company generated $41.6 million in operating cash flow. It held $92.5 million in cash and equivalents.
Guidance: The company expected to conclude FY21 with Q4 sales growth of 11% - 20% and strong earnings from backlog strength and end-market momentum, stated CEO and Chair Deepak Chopra.
The company raised FY21 revenue guidance from the previous range of $1.110 billion - $1.145 billion to the new range of $1.123 billion - $1.148 billion, against analyst consensus of $1.13 billion.
Non-GAAP EPS estimate was raised from the previous range of $5.00 - $5.35 to the new range of $5.15 - $5.40, versus the consensus estimate of $5.16.
Price action: OSIS shares traded lower by 4.08% at $96.77 on the last check Thursday.

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