OSI Systems (OSIS) Q4 Earnings Beat, Revenues Increase Y/Y
Zacks Investment Research | Aug 26, 2019 10:51PM ET
OSI Systems (NASDAQ:OSIS) reported fourth-quarter fiscal 2019 earnings of $1.15 per share, which beat the Zacks Consensus Estimate by a dime. The figure increased 12.7% year over year.
Net revenues of $308.4 million also beat the Zacks Consensus Estimate of $304 million and increased 7.3% from the year-ago quarter, driven by growth in each division, especially Optoelectronics and Manufacturing.
Top-Line Details
Security division (63.4% of net revenues) revenues increased 5.5% year over year to $195.4 million.
Demand for equipment and related services at airports, port security and correctional centers accelerated growth. The new line of checkpoint screening solution called ‘Orion’ also witnessed traction in the reported quarter.
Notably, the division won a number of contracts. In April, OSI Systems security division received an order worth roughly $10 million to provide multiple units of its RTT 110 (Real Time Tomography) explosive detection system that will be installed at a prominent European airport for screening passengers’ checked baggage.
OSI Systems’ security division was also awarded a multi-year U.S. state contract, valued at roughly $5 million, to provide service and maintenance support for checkpoint inspection systems installed at correctional facilities and detection centers.
Moreover, the division won a three-year contract worth $28 million from U.S.-based prime contractor, Huntington Ingalls Industries. The company will provide service maintenance, training, sustaining engineering and logistic support for multiple platforms of baggage, parcel and cargo inspection systems.
Additionally, the division won a $25 million delivery order from U.S. CBP, Custom and Border Patrol, to provide service, maintenance parts and logistics for inspection systems.
Optoelectronics and Manufacturing division (24.2% of net revenues) revenues increased 14.2% to $74.7 million. The growth was primarily driven by contributions from acquisitions closed in fiscal 2019.
Healthcare division (16.1% of net revenues) revenues increased 4.6% to $49.8 million. The growth can be attributed to the three large orders OSI systems received in the United States, totaling about $24 million, in the reported quarter. Hospital patient monitoring solutions like SafeNSound productivity software held the key to growth of the healthcare division in the reported quarter.
OSI Systems, Inc. Price, Consensus and EPS Surprise
Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.