Financial Data and Key Metrics - The company issued a press release announcing its fiscal 2025 second quarter financial results [4] - The discussion will include both GAAP and non-GAAP financial measures [5] Business Line Data and Key Metrics - No specific data provided in the content Market Data and Key Metrics - No specific data provided in the content Company Strategy and Industry Competition - No specific data provided in the content Management Commentary on Operating Environment and Future Outlook - The company includes forward-looking statements in its discussion, based on currently available information, and does not undertake to update these statements based on subsequent events or new information [4][5] Other Important Information - The company reminds participants that the discussion includes forward-looking statements and takes advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 [4] Q&A Session Summary - No Q&A session details provided in the content

Financial Performance - Revenue for Q4 2024 was $419.82 million, up 12.5% YoY [1] - EPS for Q4 2024 was $2.42, compared to $2.21 in the year-ago quarter [1] - Revenue surpassed the Zacks Consensus Estimate of $405.17 million by +3.62% [1] - EPS exceeded the consensus estimate of $2.35 by +2.98% [1] Key Metrics and Divisional Performance - Healthcare division revenue: $44.85 million, +7.2% YoY, beating the two-analyst average estimate of $42.85 million [4] - Intersegment eliminations revenue: -$15.76 million, -5.5% YoY, compared to the estimated -$14.97 million [4] - Optoelectronics and Manufacturing division revenue: $100.74 million, +2.7% YoY, exceeding the two-analyst average estimate of $96.55 million [4] - Security division revenue: $289.99 million, +16% YoY, surpassing the two-analyst average estimate of $281.24 million [4] Stock Performance and Market Outlook - OSI shares returned -4% over the past month, underperforming the Zacks S&P 500 composite's +2.7% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Earnings Performance - OSI Systems reported quarterly earnings of $2 42 per share, beating the Zacks Consensus Estimate of $2 35 per share, representing a 2 98% earnings surprise [1] - The company's earnings increased from $2 21 per share a year ago, with adjustments for non-recurring items [1] - In the previous quarter, OSI Systems delivered a 17 92% earnings surprise, posting $1 25 per share against an expected $1 06 per share [1] - Over the last four quarters, the company has consistently surpassed consensus EPS estimates [2] Revenue Performance - OSI Systems posted revenues of $419 82 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 3 62% [2] - This represents an increase from year-ago revenues of $373 24 million [2] - The company has topped consensus revenue estimates in each of the last four quarters [2] Stock Performance and Market Comparison - OSI shares have gained 0 9% since the beginning of the year, underperforming the S&P 500's gain of 3 5% [3] - The stock's immediate price movement will depend on management's commentary during the earnings call [3] Earnings Outlook and Estimate Revisions - The current consensus EPS estimate for the coming quarter is $2 47 on $435 93 million in revenues [7] - For the current fiscal year, the consensus EPS estimate is $9 13 on $1 68 billion in revenues [7] - The estimate revisions trend for OSI is favorable, translating into a Zacks Rank 2 (Buy) [6] - Empirical research shows a strong correlation between near-term stock movements and earnings estimate revisions [5] Industry Context - OSI Systems belongs to the Zacks Electronics - Miscellaneous Components industry, which is currently in the bottom 43% of Zacks industries [8] - The top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [8] Peer Performance - TTM Technologies, another company in the same industry, is expected to report quarterly earnings of $0 47 per share, a year-over-year increase of 14 6% [9] - The consensus EPS estimate for TTM Technologies has been revised 1 7% higher over the last 30 days [9] - TTM Technologies' revenues are expected to be $627 67 million, up 10 3% from the year-ago quarter [10]

Financial Performance - Q2 FY25 revenues reached $419.8 million, a 12% increase year-over-year[3] - Q2 FY25 net income was $37.8 million, or $2.22 per diluted share, compared to $36.6 million, or $2.11 per diluted share in the prior year[3] - Non-GAAP net income for Q2 FY25 was $41.2 million, or $2.42 per diluted share, compared to $38.3 million, or $2.21 per diluted share in the prior year[3] - Six-month revenues for FY25 were $763.8 million, up from $652.4 million in the same period last year[4] - Six-month net income for FY25 was $55.8 million, or $3.27 per diluted share, compared to $49.4 million, or $2.87 per diluted share in the prior year[4] - Updated FY25 revenue guidance is $1.685 billion to $1.710 billion, representing a growth rate of 9.5% to 11.1%[8] - Updated FY25 non-GAAP diluted EPS guidance is $9.10 to $9.40, representing a growth rate of 11.9% to 15.6%[8] - Total revenue for the company grew from $373.235 million in Q3 2023 to $419.820 million in Q3 2024, a 12.5% increase[18] - Non-GAAP net income grew from $38.254 million in Q3 2023 to $41.233 million in Q3 2024, a 7.8% increase[22] Division Performance - Security division revenues increased 16% year-over-year, with an adjusted operating margin of 19.9% in Q2 FY25[6] - Security division revenue increased from $249.975 million in Q3 2023 to $289.987 million in Q3 2024, a growth of 16%[18] - Operating income for the Security division rose from $51.856 million in Q3 2023 to $54.053 million in Q3 2024, a 4.2% increase[18] - Healthcare division operating income significantly improved from $0.429 million in Q3 2023 to $1.722 million in Q3 2024, a 301% increase[18] - Non-GAAP operating income for the Security division increased from $55.359 million in Q3 2023 to $57.775 million in Q3 2024, a 4.4% rise[23] - Non-GAAP operating margin for the Security division improved from 22.1% in Q3 2023 to 19.9% in Q3 2024[23] - Total non-GAAP operating income grew from $58.027 million in Q3 2023 to $62.870 million in Q3 2024, an 8.3% increase[23] - Optoelectronics and Security Division's GAAP operating income for the six months ended December 31, 2023, was $72,465, representing 17.5% of sales[24] - Manufacturing Division's GAAP operating income for the six months ended December 31, 2023, was $23,058, representing 11.9% of sales[24] - Healthcare Division's GAAP operating income for the six months ended December 31, 2023, was $593, representing 0.7% of sales[24] - Total GAAP operating income for the six months ended December 31, 2023, was $74,880, representing 11.5% of sales[24] - Optoelectronics and Security Division's Non-GAAP operating income for the six months ended December 31, 2023, was $78,867, representing 19.0% of sales[24] - Manufacturing Division's Non-GAAP operating income for the six months ended December 31, 2023, was $25,452, representing 13.1% of sales[24] - Healthcare Division's Non-GAAP operating income for the six months ended December 31, 2023, was $1,196, representing 1.5% of sales[24] - Total Non-GAAP operating income for the six months ended December 31, 2023, was $84,759, representing 13.0% of sales[24] - Optoelectronics and Security Division's GAAP operating income for the six months ended December 31, 2024, was $82,909, representing 16.1% of sales[24] - Manufacturing Division's GAAP operating income for the six months ended December 31, 2024, was $22,891, representing 11.5% of sales[24] Cash Flow and Debt - Q2 FY25 cash from operations was $52.5 million, a significant improvement from $23.5 million used in operations in the same quarter of the prior year[5] - Total assets increased from $1.936 billion in June 2024 to $2.131 billion in December 2024, a 10.1% growth[20] - Long-term debt surged from $129.383 million in June 2024 to $466.560 million in December 2024, a 260.6% increase[20] Backlog and Book-to-Bill Ratio - The company's book-to-bill ratio was 1.2 for Q2 FY25, with a backlog of over $1.8 billion as of December 31, 2024[5]

Earnings and Revenue Projections - Wall Street analysts expect OSI Systems to post quarterly earnings of $2 35 per share, indicating a year-over-year increase of 6 3% [1] - Revenues are projected to be $402 85 million, up 7 9% from the year-ago quarter [1] - Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter, reflecting stability in analysts' forecasts [1] Key Metrics Analysis - Revenues from the Healthcare division are projected to reach $42 85 million, a year-over-year increase of 2 4% [4] - Revenues from the Optoelectronics and Manufacturing division, including intersegment revenues, are expected to be $96 55 million, a year-over-year decline of 1 6% [4] - Revenues from the Security division are forecasted to reach $281 24 million, a year-over-year increase of 12 5% [5] Stock Performance and Market Outlook - Over the past month, OSI shares have recorded returns of -4 9%, underperforming the Zacks S&P 500 composite's -0 4% change [6] - Based on its Zacks Rank 2 (Buy), OSI Systems is likely to outperform the overall market in the upcoming period [6]

Stock Analysis: OSI Systems (OSIS) - The stock of OSI Systems, an airport security and full-body scanner manufacturer, has shown a solid price increase of 22.4% over the past 12 weeks, reflecting investor confidence in its potential upside [9] - Over the past four weeks, the stock has maintained a price increase of 1.5%, indicating a sustained upward trend [3] - OSIS is currently trading at 82.6% of its 52-week High-Low Range, suggesting it may be on the verge of a breakout [10] Fundamental Strength - OSIS carries a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 stocks ranked based on earnings estimate revisions and EPS surprises [4] - The company has an Average Broker Recommendation of 1 (Strong Buy), indicating high optimism among brokerage communities about its near-term price performance [5] Investment Strategy - The Zacks Rank stock-rating system, which classifies stocks into five groups, has a strong track record, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [11] - Investors can use the "Recent Price Strength" screen to identify stocks on an uptrend, trading in the upper portion of their 52-week high-low range, which is typically a bullish indicator [8] - Timing entries into a trend is crucial for short-term investing success, and ensuring the sustainability of a trend can increase the odds of profitability [7] Additional Resources - Zacks Premium Screens offer over 45 predefined strategies to help investors find winning stock picks based on their personal investing style [6] - The Zacks Research Wizard allows investors to backtest the effectiveness of their stock-picking strategies and provides access to some of the most successful strategies [14]

Trend Analysis and Stock Selection - The trend is crucial for short-term investing or trading, but ensuring its sustainability is challenging [1] - A stock's price movement can reverse quickly, leading to short-term capital losses, so factors like sound fundamentals and positive earnings estimate revisions are essential to maintain momentum [2] - The "Recent Price Strength" screen helps identify stocks on an uptrend with strong fundamentals, trading in the upper portion of their 52-week high-low range, indicating bullishness [3] OSI Systems (OSIS) Analysis - OSIS has shown a solid price increase of 10% over 12 weeks, reflecting investor confidence in its potential upside [4] - A 22.7% price increase over the past four weeks confirms the stock's upward trend, particularly for an airport security and full-body scanner manufacturer [5] - OSIS is trading at 92.7% of its 52-week High-Low Range, suggesting it may be on the verge of a breakout [6] Fundamental Strength of OSIS - OSIS holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 stocks based on earnings estimate revisions and EPS surprises [6] - The Zacks Rank system has a strong track record, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7] - OSIS has an Average Broker Recommendation of 1 (Strong Buy), indicating high optimism among brokerage firms about its near-term performance [7] Additional Stock Opportunities - Several other stocks pass the "Recent Price Strength" screen, offering potential investment opportunities [8] - Over 45 Zacks Premium Screens are available to help investors find winning stocks based on their personal investing style [8] Strategy Validation - A successful stock-picking strategy should have a history of profitable results, which can be validated using tools like the Zacks Research Wizard [9]

Company Comparison - OSI Systems (OSIS) has a Zacks Rank of 2 (Buy), indicating strong earnings estimate revision activity and an improving analyst outlook [3] - nVent Electric (NVT) has a Zacks Rank of 4 (Sell), suggesting less favorable earnings estimate revisions [3] - OSIS has a forward P/E ratio of 14.50, significantly lower than NVT's forward P/E of 22.88 [5] - OSIS has a PEG ratio of 1.23, compared to NVT's PEG ratio of 1.52, indicating better valuation relative to earnings growth [5] - OSIS has a P/B ratio of 2.81, lower than NVT's P/B ratio of 3.77, suggesting a more attractive valuation based on book value [6] Valuation Metrics - The Value category grades stocks based on key metrics such as P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] - OSIS has a Value grade of B, while NVT has a Value grade of C, indicating OSIS is more attractive from a value perspective [6] Investment Recommendation - OSIS stands out in both Zacks Rank and Style Scores models, making it a better option for value investors compared to NVT [6]

OSI Systems (OSIS) has been on a downward spiral lately with significant selling pressure. After declining 13.5% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysis that the company will report better earnings than they predicted earlier. Here is How to Spot Oversold Stocks We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 000-23125 OSI SYSTEMS, INC. (Exact name of registrant as specified in its charter) Delaware 33-0238801 (State ...