Overview
- The company reported results on Thursday that showed a non-GAAP Q4 EPS of $3.78 versus a $3.77 estimate and revenue of $484.1 million well below the $529.7 million analysts expected.
- OSI stock fell about 9.9% on Friday as traders reacted to the sizable revenue miss and the difference between non-GAAP Q4 EPS of $3.78 and GAAP Q4 EPS of $3.27.
- Management said roughly $50 million of Security-division deliveries were delayed by conflicts in the Middle East and that those orders remain in the company’s backlog rather than being lost.
- For fiscal 2026 OSI reported record revenue near $1.79 billion, record non-GAAP EPS of $10.35, and free cash flow of $245.3 million, which yields a much lower price-to-free-cash-flow metric than its roughly 22x P/E.
- Company guidance for fiscal 2027 calls for $1.875 billion to $1.93 billion in revenue and non-GAAP EPS of $11.13 to $11.49 with growth weighted to the second half which investors will watch to judge whether near-term execution issues ease.