OSI Systems Rides on Strong Order Pipeline in Security Division

OSI Systems OSIS is riding on an expanding order book across its Security division. In the second quarter of fiscal 2025, Security revenues jumped 16% year over year to roughly $290 million and accounted for 69% of total revenues, which surged 12% to $419.8 million. The company’s book-to-bill ratio for the second quarter of fiscal 2025 was 1.2, and the backlog was more than $1.8 billion as of Dec. 31, 2024.The strong performance of the Security division has benefited OSIS shares, which have appreciated 17.5% year to date, outperforming the Zacks Electronics-Miscellaneous Components industry and industry peers, including Fabrinet FN, TE Connectivity TEL and Universal Display OLED.While Universal Display and TE Connectivity shares have returned 1.4% and 0.6%, respectively, Fabrinet declined 9.5%. Industry dropped 7.7% over the same timeframe.OSIS’ Security Division Gains Traction in 2025Security order book continues to increase, with OSI Systems recently announcing an order worth $76 million to provide airport screening solutions for a major international airport. RTT 110 (Real-Time Tomography) explosive detection system for screening hold baggage and Itemiser 5X for detecting trace amounts of explosives and narcotics are among the solutions to be deployed.The latest order followed a February international order worth $32 million to provide radio frequency (RF) based critical systems that are designed for long-range secure communications. OSI Systems is expected to support the systems integration and deployment activities for this program. In January, the Security division received multiple orders, including an international award valued at roughly $12 million, to provide multiple units of the Eagle M60 ZBx multi-energy, mobile cargo and vehicle inspection system with combinational imaging, including follow-on maintenance and support. An international customer placed an order worth $81 million for multiple units of the Eagle M60 mobile high-energy cargo and vehicle inspection system. Apart from these, OSIS received an order worth $23 million to assist in the deployment and integration of long-range RF critical communication systems. Another order worth $27 million was to provide a range of checkpoint and hold baggage screening solutions, including RTT 110, Orion 920CT checkpoint screening system integrated with Rapiscan TRS (Tray Return System) for inspecting carry-on items, Orion 928DX for screening air cargo and pallets, and Itemiser 5X.OSIS Raises Guidance for 2025For fiscal 2025, revenues are now expected between $1.685 and $1.71 billion, better than the previous guidance range of $1.67-$1.695 billion. Revenues are now expected to grow in the 9.5%-11.1% range.Non-GAAP earnings are now expected between $9.10 and $9.40 per share, up from the previous guidance range of $9-$9.30 per share. Earnings are expected to grow between 11.9% and 15.6%.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report TE Connectivity Ltd. (TEL): Free Stock Analysis Report OSI Systems, Inc. (OSIS): Free Stock Analysis Report Fabrinet (FN): Free Stock Analysis Report Universal Display Corporation (OLED): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks