OSI Systems Inc

OSI Systems shares dropped 9.44% over the past week after fourth-quarter revenue of US$484.06 million came in slightly below the prior year due to conflict-related delivery delays. Net income rose to US$55.24 million, full-year earnings hit a record, and backlog climbed to about US$1.90 billion, including new multi-year security contracts with U.S. Customs and Border Protection. The company has retired nearly 22% of its shares since 2020 and expanded its buyback authorization, while management issued new FY2027 revenue guidance. Investors are now focused on how quickly the delayed security contracts convert to revenue, with community fair value estimates ranging from about US$165 to over US$315 per share.

OSI Systems shares fell nearly 10% to about $197.79 on Friday after the company reported fiscal fourth quarter 2026 revenue of $484.1 million, down 4% year over year and well below analysts' estimate of about $529.7 million. The shortfall was driven by roughly $50 million of planned security division deliveries pushed beyond the fiscal year-end due to Middle East conflicts and site-access constraints, which management stressed were delayed rather than canceled. Non-GAAP EPS rose 17% to $3.78, slightly ahead of the $3.77 estimate, and adjusted operating margin expanded to 17.7% from 15.7%. The company ended fiscal 2026 with record operating cash flow of $275.9 million and a record backlog of about $1.9 billion, while repurchasing $123.6 million of stock in the quarter. Management guided fiscal 2027 revenue of $1.875 billion to $1.93 billion and non-GAAP EPS of $11.13 to $11.49, with growth expected to be strongest in the second half and newer DHS-related business contributing from fiscal 2028 onward.

Stock futures edged slightly higher early Friday as markets attempted to rebound from Thursday's steep selloff, with gains supported by a pullback in U.S. Treasury yields. Strategy rallied 10% after the firm returned to profitability on its Bitcoin holdings, swinging to an estimated $1.4B unrealized gain as the cryptocurrency surged nearly 22% over five sessions to around $78,500. Ross Stores jumped 9% after reporting stronger-than-expected quarterly results, with sales up 14% to $6.3B, comparable store sales up 10%, and EPS of $2.66, while raising its FY2026 EPS outlook to $8.61-$8.77 from $7.50-$7.74. OSI Systems plunged 14% after Q4 revenue declined 4.1% Y/Y to $484.1M, missing estimates by $45.6M, and its FY2027 revenue guidance of $1.875B-$1.93B came in below the $1.94B consensus. Aveanna Healthcare Holdings tumbled 9% after existing stockholders priced a 15M-share secondary offering at $11.75 per share, with the company receiving no proceeds. Flowers Foods fell 5% after Q2 revenue declined 4% Y/Y to $1.19B, missing estimates by $40M, and the company cut its FY2026 outlook to $5.07B-$5.14B in sales and $0.75-$0.85 in adjusted EPS, below consensus.

OSI Systems reported fourth-quarter revenue of $484.06 million, down 4.1% year over year and 8.38% below the Zacks Consensus Estimate of $528.34 million. Earnings per share came in at $3.78, up from $3.24 a year earlier and slightly above the consensus estimate of $3.76. Security division revenue fell 7.4% to $339.73 million, missing the $388 million analyst estimate, while healthcare revenue rose 4.8% to $44.75 million and optoelectronics and manufacturing revenue increased 4.6% to $117.81 million. Non-GAAP operating income in the security division was $70.65 million, below the $81.4 million estimate, but healthcare and optoelectronics divisions both exceeded expectations.

Cognex reported first-quarter revenues of $268.4 million, up 24.3% year on year and exceeding analyst expectations by 9.3%, making it the top performer among eight specialized technology stocks tracked. The company also beat earnings per share estimates and raised its revenue guidance above consensus. Overall, the group posted a 4.2% revenue beat and next-quarter guidance 3.9% above estimates, though average share prices have declined 3.7% since reporting. PAR Technology delivered the highest full-year guidance raise, while OSI Systems recorded the slowest revenue growth and weakest guidance update, with its stock falling 25.7%.

Mirion Technologies reported first-quarter revenues of $257.6 million, up 27.5% year on year and beating analyst estimates by 5.2%, making it the fastest-growing among eight specialized technology stocks tracked. The broader group posted a very strong quarter overall, with aggregate revenues exceeding consensus by 4.2% and next-quarter guidance coming in 3.9% above expectations. Despite the strong results, share prices across the group have declined 3.9% on average since reporting. Mirion's stock is flat since its release, trading at $18.50, while Cognex delivered the biggest beat and highest guidance raise, and OSI Systems recorded the slowest growth and weakest guidance update.