January 23, 2025
Shares of electronic components and systems provider OSI Systems (NASDAQ:OSIS) jumped 15.2% in the afternoon session after the company reported a "beat and raise" quarter. Fourth-quarter results exceeded analysts' revenue and EPS expectations due to strong outperformance in its Security segment. Guidance was also strong as it raised its full-year revenue and EPS outlook. Overall, we think this was a solid "beat-and-raise" quarter with some key metrics above expectations.
The shares closed the day at $193.05, up 14.3% from previous close.
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OSI Systems’s shares are not very volatile and have only had 3 moves greater than 5% over the last year. Moves this big are rare for OSI Systems and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 5 months ago when the stock gained 6.4% on the news that the company reported strong second-quarter earnings results, with revenue and EPS exceeding Wall Street's estimates. The strong performance was driven by outperformance in the Security division. With backlog near all-time highs and given the "robust pipeline of opportunities," management gave promising financial projections as full-year sales and EPS guidance both came in ahead of consensus. Zooming out, we think this was an impressive quarter.
OSI Systems is up 17.2% since the beginning of the year, and at $193.83 per share, has set a new 52-week high. Investors who bought $1,000 worth of OSI Systems’s shares 5 years ago would now be looking at an investment worth $1,964.
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