Oppenheimer says OSI System ‘mid-year pacing OK,’ Q2 a lighter order quarter

Commenting on OSI Systems (OSIS)’ earnings report, Oppenheimer analyst Christopher Glynn notes that operating profit was in line to slightly above expectations, on modest sales upside. Slightly favorable below-the-line items supported EPS upside. Revenue guidance was unchanged with EPS upped to 10%-13% from 9%-12%, reflecting benefits to shares and interest expense connected to the converts issuance. The firm believes the narrative is unchanged, with some puts/takes. Q2 was a lighter orders quarter with USG shutdown connecting to some pushouts along with some international timing factors, and Healthcare sagged. On the plus side, trendline momentum seems soundly intact, Oppenheimer notes. The firm has an Outperform rating on the shares with a price target of $320.