What happened

Technology solutions specialist OSI Systems (NASDAQ:OSIS) has trounced the market so far this year, with the stock up 54% in the first half of 2019 compared to a 17% increase in the S&P 500, according to data provided by S&P Global Market Intelligence.

A circuit being cut by a laser

Image source: Getty Images.

So what

Investors have struggled to catch up to management's escalating sales and profit outlooks for the year. CEO Deepak Chopra and his team boosted that forecast in late January after the company reported a 9% sales increase -- paired with a 20% spike in order backlog. OSI Systems followed that news up with another outlook hike in late April, when sales gains accelerated to a 14% pace. Each of its three product divisions -- security, healthcare, and defense and aerospace -- contributed to the market-beating growth.

Now what

Executives are now targeting sales of between $1.17 billion and $1.19 billion this year, which would translate into a high-single-digit expansion rate. The better news for investors is that cost cuts and restructuring initiatives are ensuring much faster earnings growth, with profit now on track to rise to about $4.20 per share for a 16% increase, year over year.