What happened
Shares of OSI Systems (OSIS 0.50%) are seeing strong pricing gains Thursday. The company's stock was up 16.1% as of 10:30 a.m. ET, according to data from S&P Global Market Intelligence.
Before the market opened today, OSI published its results for the fourth quarter of its fiscal year -- which ended June 30. The company recorded non-GAAP (adjusted) earnings per share of $2.66 on sales of $411.9 million in the period, while the average analyst estimate had called for per-share earnings of $2.54 on sales of $411.9 million.
So what
OSI makes electronics hardware for security purposes, optoelectronics, and healthcare applications. Sales for the security segment rose 28.7% year over year in the fourth quarter to hit $269.1 million. Meanwhile, its healthcare segment saw revenue increase 17.9% to reach $59.5 million, and optoelectronics revenue grew 11.2% to reach $100.9 million.
The company grew revenue 22.3% year over year in its fiscal fourth quarter and showed signs of strong demand extending into the current fiscal year. The hardware specialist ended last quarter with an order backlog of $1.8 billion -- up 46% annually from where the figure was at the end of the prior-year period. Meanwhile, net income in the quarter hit $42.4 million -- up from $33.8 million in last year's fourth quarter.
Now what
In addition to delivering better-than-expected Q4 performance, OSI also issued encouraging guidance. For the current fiscal year, OSI Systems expects to grow revenue more than 18% annually and increase adjusted earnings per share more than 25%.
OSIS PE Ratio (Forward) data by YCharts
With today's stock pop factored in, OSI is valued at approximately 19.6 times this year's expected earnings and 1.7 times expected sales.
