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Should OSI Systems Stock Be in Your Portfolio Pre-Q1 Earnings?

Core Viewpoint - OSI Systems (OSIS) is expected to report strong first-quarter 2025 results, with earnings estimated at $1.06 per share, reflecting a 16.48% increase year-over-year, despite a slight decline in estimates over the past month [1] Group 1: Earnings and Revenue Estimates - The Zacks Consensus Estimate for OSIS's first-quarter revenues is $326.71 million, indicating a 17.01% growth from the previous year [1] - OSI Systems has a history of exceeding earnings expectations, with an average surprise of 9.56% over the last four quarters [1] Group 2: Factors Driving Growth - The Security division of OSI Systems reported a 27% revenue increase in the fourth quarter of fiscal 2024, contributing to overall revenue growth of 17% year-over-year [2] - The company is benefiting from increased passenger traffic, particularly in the aviation sector, which is expected to continue into the upcoming quarter [2] - OSI Systems secured $52 million in orders from two international airports in the fourth quarter of fiscal 2024, contributing to a backlog of $1.7 billion, positioning the company for significant revenue generation in the first quarter of fiscal 2025 [2] Group 3: Earnings ESP and Zacks Rank - OSI Systems has an Earnings ESP of -6.82% and a Zacks Rank of 2 (Buy), indicating a lower probability of an earnings beat compared to other stocks with more favorable metrics [3]