Core Viewpoint - OSI Systems (OSIS) is experiencing significant growth driven by strong demand across its divisions, particularly in Security and Healthcare, supported by substantial contract wins and a healthy backlog of orders. Group 1: Financial Performance - OSIS shares have increased by 23.4% year to date, outperforming the Zacks Electronics - Miscellaneous Components industry and peers such as Allient, Kyocera, and Ouster [2] - The company reported revenues of $344 million in the first quarter of fiscal 2025, marking a 23% year-over-year increase, alongside a 34% rise in operating income [3] - The Security division's revenues rose by 36% year-over-year in the first quarter of fiscal 2025, reflecting heightened demand for products and services [4] Group 2: Contract Wins and Backlog - OSIS secured an $11-million order for its Optoelectronics and Manufacturing division to supply electronic sub-assemblies to a healthcare OEM [1] - The company is progressing on a $500-million contract with Mexico's defense agency, SEDENA, aimed at improving port and border security, and has also obtained a $200-million international project [5] - OSI was awarded a $17-million international order for cargo and vehicle inspection systems and a $10-million order for Z Backscatter Van mobile inspection systems, which includes training and support [6][7] Group 3: Market Position and Outlook - A substantial backlog of $1.8 billion indicates healthy future demand for OSIS's offerings [3] - The company's broad global manufacturing footprint and exposure to various end markets continue to benefit its Optoelectronics and Manufacturing divisions [4] - OSI Systems currently holds a Zacks Rank 2 (Buy), indicating positive market sentiment [8]
OSI Systems Wins $11M Healthcare Order: Time to Buy the Stock?