OSI Systems (NASDAQ: OSIS) — now that’s a blast from the past. It’s been close to a decade since I last wrote about the maker of X-ray and metal detector systems for air traveler and cargo screening. And yet, OSI Systems was making headlines after reporting a powerful sales and earnings beat Thursday morning.
As of 12:36 p.m. ET, OSI stock was up 15.3%.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. See the 10 stocks »
OSI reported its fiscal 2025 second-quarter results Thursday morning, posting record revenues of $419.8 million, up 12% year over year and well ahead of the $406.6 million Wall Street analysts had predicted. Similarly, OSI’s earnings were $2.42 per share, more than the Street’s $2.33 consensus estimate.
That’s the good news.
The bad news is that OSI’s “$2.42 per share” profit was a pro forma number. Calculated according to generally accepted accounting principles (GAAP), earnings were $2.22 per share, up just 5% year over year. Still, it’s worth noting that OSI was up front about this: The report discussed the GAAP figure before mentioning the non-GAAP number.
I consider this a transparent and shareholder-friendly move, so kudos to OSI for that.
And there’s always the chance that OSI’s GAAP numbers will improve to levels more closely resembling its adjusted results. Management raised its forecast for fiscal 2025 sales, predicting growth of 9.5% to 11.1%, which is as much as a full percentage point better than previous guidance. Management also said its book-to-bill ratio in fiscal Q2 was 1.2, which supports the premise that its sales will grow in future quarters.
Management’s guidance on earnings growth is that it will exceed sales growth, landing in the 11.9% to 15.6% range. Granted, that, too, is looking at non-GAAP earnings. But it’s worth noting that in fiscal Q2, OSI generated $47 million in free cash flow, delivering a money-making quarter after four straight quarters of burning cash.
That’s an improvement for OSI. I only hope the company can keep it up.
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $381,355!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $42,390!*
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $514,479!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of January 21, 2025
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
—
Blog powered by G6
Disclaimer! A guest author has made this post. G6 has not checked the post. its content and attachments and under no circumstances will G6 be held responsible or liable in any way for any claims, damages, losses, expenses, costs or liabilities whatsoever (including, without limitation, any direct or indirect damages for loss of profits, business interruption or loss of information) resulting or arising directly or indirectly from your use of or inability to use this website or any websites linked to it, or from your reliance on the information and material on this website, even if the G6 has been advised of the possibility of such damages in advance.
For any inquiries, please contact [email protected]
