Jefferies analyst Sheila Kahyaoglu refutes the arguments made against OSI Systems by Muddy Waters Research. The short report challenges the validity and legitimacy of OSI's turnkey business model, which represents 15% of total company revenue, Kahyaoglu tells investors in a research note titled "In Need of a Security Blanket." The analyst believes pricing risk from the Mexico contract is not factored into the share price and that a contract renewal is likely given OSI's investment in the program. The analyst adds that while OSI had a "rocky beginning" in Albania, the contract negotiations "appear to be old news." Kahyaoglu keeps a Buy rating on OSI Systems with a $106 price target.

Consensus $8.02. Backs FY24 revenue view up at least 19%, consensus $1.52B. The company said, "The Company is reiterating its fiscal 2024 revenues guidance of anticipated growth in excess of 19% over revenues in fiscal 2023. The Company is increasing its non-GAAP adjusted diluted earnings per share guidance from greater than 29% growth to greater than 30% growth compared to non-GAAP adjusted diluted earnings per share for fiscal year 2023. Actual revenues and adjusted diluted earnings per share could vary from this guidance due to factors discussed under "Forward-Looking Statements" or other factors."

Reports Q3 revenue $405.4M, consensus $403.46M. Reports Q3 ended backlog of $1.8B. Deepak Chopra, OSI Systems' chairman and CEO, stated, "We are pleased to report strong financial results as outstanding performance in the Security division led to record third quarter revenues and adjusted earnings per share. Given continued solid bookings, a strong backlog, and high visibility into our pipeline of opportunities, we anticipate a strong conclusion to fiscal 2024 and we believe we are well positioned for fiscal 2025."