OSI Systems (NAS: OSIS) reported earnings on Jan. 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q2), OSI Systems beat slightly on revenues and earnings per share.
Compared to the prior-year quarter, revenue improved and earnings per share increased significantly.
Gross margins contracted, operating margins grew, and net margins expanded.
OSI Systems reported revenue of $188 million. The four analysts polled by S&P Capital IQ hoped for sales of $185 million. Sales were 11% higher than the prior-year quarter's $169 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.61. The four earnings estimates compiled by S&P Capital IQ predicted $0.60 per share. GAAP EPS of $0.61 for Q2 were 30% higher than the prior-year quarter's $0.47 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 35.0%, 50 basis points worse than the prior-year quarter. Operating margin was 9.7%, 130 basis points better than the prior-year quarter. Net margin was 6.5%, 110 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $193 million. On the bottom line, the average EPS estimate is $0.65.
Next year's average estimate for revenue is $749 million. The average EPS estimate is $2.32.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 156 members out of 172 rating the stock outperform, and 16 members rating it underperform. Among 57 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 51 give OSI Systems a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on OSI Systems is buy, with an average price target of $52.25.
Over the decades, small-cap stocks like OSI Systems have produced market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
Add OSI Systems to My Watchlist.
At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.