OSI Systems Reports Record Q3 Revenues

By Tamara Parker • Thursday, April 25 10:20 • Permanent Link

OSI Systems, Inc. has reported strong financial results for the third quarter of fiscal year 2024, with record revenues of $405 million, marking a 34% growth year-over-year. The company's operating income surged by 50% compared to the same quarter in the previous year, and it achieved a Q3-ended backlog of approximately $1.8 billion, driven by strong bookings.

The Q3 earnings per diluted share also exhibited remarkable growth, with GAAP diluted EPS of $1.95, reflecting a 54% increase year-over-year, and record non-GAAP adjusted diluted EPS of $2.16, indicating a 45% increase year-over-year. For the nine months ended March 31, 2024, OSI Systems reported revenues of $1.06 billion, compared to $866.6 million in the same period a year ago, showcasing significant growth.

The company's performance was propelled by the outstanding results in its security division, which saw a 60% increase in revenues year-over-year, driving substantial operating income growth and adjusted operating margin expansion. The strong momentum in the security division was supported by solid bookings, leading to a quarter-end backlog comparable to the previous quarter.

However, the optoelectronics and manufacturing division reported softer third-quarter revenues, partly due to customer inventory adjustments and delayed deliveries. Despite this, the company's Chairman and CEO, Deepak Chopra, expressed confidence in the division's prospects for a solid fourth quarter and future growth.

The healthcare division faced challenges due to the hospital spending environment, but the company remains focused on new product development, particularly in the patient monitoring portfolio, to drive sustainable growth in this segment.

Looking ahead, OSI Systems is anticipating a strong conclusion to fiscal year 2024 and believes it is well-positioned for fiscal 2025, reiterating its fiscal 2024 revenues guidance of anticipated growth in excess of 19% over revenues in fiscal 2023. Additionally, the company is increasing its non-GAAP adjusted diluted earnings per share guidance from greater than 29% growth to greater than 30% growth compared to the previous fiscal year.

The market has reacted to these announcements by moving the company's shares -7.0% to a price of $129.91. For more information, read the company's full 8-K submission here.

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