Core Viewpoint - OSI Systems reported strong fiscal Q2 results, with significant revenue and earnings beats, leading to a notable increase in stock price [1][2]. Financial Performance - OSI Systems achieved record revenues of $419.8 million in fiscal Q2 2025, representing a 12% year-over-year increase and surpassing Wall Street's expectation of $406.6 million [2]. - The company's earnings per share (EPS) were reported at $2.42, exceeding the consensus estimate of $2.33, although the GAAP EPS was $2.22, reflecting a more modest 5% year-over-year growth [2][3]. Transparency and Guidance - OSI Systems provided clarity by discussing GAAP figures before presenting non-GAAP results, which is seen as a shareholder-friendly approach [3]. - Management raised its fiscal 2025 sales growth forecast to between 9.5% and 11.1%, indicating a positive outlook compared to previous guidance [4]. - The book-to-bill ratio for fiscal Q2 was reported at 1.2, suggesting strong future sales growth potential [4]. Cash Flow and Earnings Outlook - The company generated $47 million in free cash flow during fiscal Q2, marking a turnaround after four consecutive quarters of cash burn [5]. - Management anticipates that earnings growth will outpace sales growth, projecting a range of 11.9% to 15.6% for non-GAAP earnings [5].
Why OSI Systems Stock Soared by More Than 15% Thursday