Behind OSI Systems’ (OSIS) Q3 Numbers
The accounting-related benefits continue
This is a follow-up to our 3/21/2025 look at OSIS’ quality of earnings.
The market initially liked OSIS’s Q3 results, driving the stock price up about 10%. However, the company has since given back much of this ground. While OSIS beat forecasts by smaller amounts than it normally does:
Results are still lumpy depending on large orders and randomness in collections. Cash flow was higher in Q2 and Q3, but that comes after many quarters of negative cash flow. While OSIS raised guidance by 5 cents, it still has a 30-cent spread in adjusted EPS guidance ($3.04-$3.34) with one quarter to go.
More importantly, we continue to see one-time accounting-related benefits that can more than account for the earnings beat. Let’s get behind the numbers..