OSI Systems
The 10-second takeaway
For the quarter ended Sep. 30 (Q1), OSI Systems met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased significantly.
Margins increased across the board.
Revenue details
OSI Systems booked revenue of $181.7 million. The five analysts polled by S&P Capital IQ foresaw a top line of $183.2 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $161.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.31. The five earnings estimates compiled by S&P Capital IQ predicted $0.32 per share. GAAP EPS of $0.31 for Q1 were 29% higher than the prior-year quarter's $0.24 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 33.8%, 100 basis points better than the prior-year quarter. Operating margin was 5.6%, 90 basis points better than the prior-year quarter. Net margin was 3.5%, 50 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $210.4 million. On the bottom line, the average EPS estimate is $0.70.
Next year's average estimate for revenue is $874.0 million. The average EPS estimate is $2.89.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 163 members out of 177 rating the stock outperform, and 14 members rating it underperform. Among 56 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 52 give OSI Systems a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on OSI Systems is outperform, with an average price target of $84.75.
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