OSI Systems Shines: Robust Q4 Results Underscore Security, Medical Tech Dominance

OSI Systems, Inc OSIS reported fourth-quarter revenue growth of 22% year-over-year to $411.9 million, beating the consensus of $384.5 million.

Security division revenue improved to $269.1 million from $209.1 million a year ago.

Healthcare division revenue climbed to $59.5 million, up from 50.5 million a year ago.

Optoelectronics and Manufacturing division revenue was $100.9 million, up from $90.7 million a year ago.

The gross margin declined by 163 bps to 34.7%. The adjusted operating margin expanded by 190 bps to 15.6% as the profit improved by 39.3% Y/Y.

Adjusted EPS was $2.66, beating the consensus of $2.53.

OSIS's book-to-bill ratio was 2.4, and the backlog was $1.8 billion (+46% Y/Y).

The Q4 operating cash flow was $22.1 million, and capital expenditures were $3.1 million.

FY24 Outlook: OSIS expects revenue growth of over 18% Y/Y vs. a consensus of $1.25 billion and adjusted EPS growth of over 25% Y/Y vs. a consensus of $6.09.

Price Action: OSIS shares closed higher by 1.3% at $120.17 on Wednesday.