OSI Systems (NASDAQ:OSIS) is set to release third-quarter fiscal 2019 results on Apr 30.
Notably, the company has surpassed the Zacks Consensus Estimate in the trailing four quarters, with the average being 19%.
In the last reported quarter, OSI Systems reported earnings of $1.19 per share that beat the Zacks Consensus Estimate by 25 cents. Revenues of $303.2 million also surpassed the consensus mark of $288 million.
The Zacks Consensus Estimate for third-quarter fiscal 2019 revenues currently stands at $290.1 million, indicating growth of 8.5% from the year-ago quarter’s reported figure. Moreover, the consensus mark for earnings has remained steady at 94 cents over the past 30 days, implying growth of 9.3% from the figure reported in the year-ago quarter.
Let’s see how things are shaping up for this announcement.
OSI Systems, Inc. Price and EPS Surprise
Factors to Watch
OSI Systems is benefiting from strong demand for its security solutions that are likely to drive the top line in the to-be-reported quarter.
The strong demand results from the fact that security remains a top priority for governments across the globe. Demand for equipment and related services is strong in key markets like airports, port and border security.
During the last quarter, OSI Systems security division received an order worth roughly $7 million to provide multiple units of its RTT 110 (Real Time Tomography) explosive detection system that will be installed at a European airport for screening passengers’ checked baggage.
OSI Systems’ security division also won a contract worth $4 million from an international airport. The company will provide multiple units of Itemiser 4DX explosives and narcotics detection system along with follow-on service and spare parts support.
Notably, in January, the company entered a 10-year contract to provide a complete turnkey screening solution for the Port of Santo Tomas de Castilla, Guatemala.
The turnkey services programs in Mexico, Puerto Rico, Albania and Guatemala are expected to boost OSI Systems’ higher-margin recurring revenue base.
Moreover, improving healthcare orders and the company’s focus on selling profitable product lines are expected to drive the upcoming quarterly results. Notably, OSI Systems’ division, Spacelabs Healthcare, received an order worth nearly $8 million to provide patient monitoring solutions and related accessories to a U.S. hospital in the last quarter.
Although the aforesaid contract wins and awards don’t materially impact third-quarter fiscal 2019 results, they reflect the strength of OSI Systems’ portfolio and an expanding customer base.
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has a good chance of beating estimates. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.
OSI Systems has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Stocks With Favorable Combination
Here are some stocks you may want to consider, as our model shows these have the right combination of elements to post an earnings beat.
Synopsis (NASDAQ:SNPS) has an Earnings ESP of +1.15% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Intuit (NASDAQ:INTU) has an Earnings ESP of +1.49% and a Zacks Rank #2.
Sapiens International (NASDAQ:SPNS) has an Earnings ESP of +6.67% and a Zacks Rank #2.
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OSI Systems, Inc. (OSIS): Free Stock Analysis Report
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