OSI Systems OSIS is scheduled to release first-quarter 2025 results on Oct. 24.

The Zacks Consensus Estimate for first-quarter earnings is pegged at $1.06 per share, suggesting 16.48% growth from the figure reported in the year-ago quarter. The estimate has declined 2.8% over the past 30 days.

The consensus mark for revenues is pegged at $326.71 million, indicating growth of 17.01% from the year-ago quarter's reported figure.

OSI Systems has consistently surpassed earnings expectations, outperforming the Zacks Consensus Estimate in the trailing four quarters, with an average surprise of 9.56%.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Key Factors to Drive OSIS’s Q1 Results

OSI Systems’ Security, Optoelectronics and Manufacturing divisions reported robust top-line growth in the fourth quarter of fiscal 2024.

Revenues of $481 million grew 17% year over year. This growth was driven by the robust performance of the Security division, which experienced a remarkable 27% rise in revenues. The trend is expected to have continued in the to-be-reported quarter.

OSI Systems has been benefiting from ongoing growth in passenger traffic due to its strong aviation customer base. OSIS expects this positive trend to have continued in the quarter under review.

Aviation bookings were particularly strong in the second half of fiscal 2024. In the fourth quarter of fiscal 2024, OSI Systems secured $52 million in orders from two international airports.

OSIS had strong bookings in the fourth quarter of fiscal 2024, ending with a backlog of $1.7 billion. The backlog positions OSI Systems to generate significant revenues in the first quarter of fiscal 2025.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the exact case here.

OSIS has an Earnings ESP of -6.82% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies worth considering, as, per our model, they possess the right combination of elements to exceed earnings estimates this time around:

Reddit Inc. RDDT currently has an Earnings ESP of +58.14% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Reddit shares have gained 56.3% year to date. RDDT is set to report its third-quarter 2024 results on Oct. 29.

Onto Innovation ONTO has an Earnings ESP of +2.74% and a Zacks Rank #2 at present. 

Onto shares have gained 34.7% year to date. ONTO is set to report its third-quarter 2024 results on Oct. 31.

Garmin GRMN has an Earnings ESP of +1.03% and a Zacks Rank of 2 at present.

Garmin shares have gained 28.6% year to date. GRMN is set to report its third-quarter 2024 results on Oct. 30.

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