HAWTHORNE, Calif. - OSI Systems , Inc. (NASDAQ:OSIS) announced today that it has been awarded a substantial contract valued at approximately $42 million by an international airport to enhance security measures. The deal includes the provision and maintenance of advanced screening technologies for both passenger checkpoints and cargo areas.
The company will supply its RTT® 110 and Orion® 920CT systems for explosive detection and carry-on item inspection, respectively, as well as the Rapiscan TRS™ for efficient processing at checkpoints. Moreover, OSI Systems will deliver its 935DX systems to screen larger items and pallets in air cargo.
Deepak Chopra, OSI Systems' Chairman and CEO, expressed the company's enthusiasm for the contract, highlighting the importance of meeting international airport security standards and the role of their technology in bolstering safety and security measures.
OSI Systems, with over four decades of experience in electronics engineering and manufacturing, operates globally, offering solutions across homeland security, healthcare, defense, and aerospace sectors.
This contract also encompasses a multi-year service agreement, ensuring the airport will receive ongoing maintenance and support for the deployed security systems.
The announcement is based on a press release statement and reflects the company's current expectations, which are subject to risks and uncertainties that could cause actual results to differ materially. OSI Systems has not provided further details on the specific international airport or the expected timeline for the implementation of the security systems.
InvestingPro Insights
OSI Systems, Inc. (NASDAQ:OSIS) has recently secured a significant $42 million contract to elevate security measures at an international airport, a move that underscores the company's robust position in the security solutions market. In light of this development, key financial metrics from InvestingPro paint a promising picture for the company's valuation and stability.
With a market capitalization of $2.3 billion and a P/E ratio of 18.11, OSI Systems trades at a valuation that appears reasonable when considering its near-term earnings growth potential. The company's PEG ratio, standing at a mere 0.36 for the last twelve months as of Q3 2024, suggests that the stock may be undervalued relative to its earnings growth, an insight that could be particularly interesting for value investors. Moreover, a robust revenue growth of 22.13% during the same period indicates a strong top-line expansion, which is often a precursor to sustained profitability and financial health.
InvestingPro Tips further enhance the investment thesis for OSI Systems. The company's stock is known for its low price volatility, which might appeal to investors seeking stability in their portfolio. Moreover, analysts are optimistic about the company's profitability, projecting earnings to remain solid throughout the year.
It is also worth noting that OSI Systems has been profitable over the last twelve months, reinforcing the confidence in its operational efficiency. However, potential investors should consider that the company does not pay a dividend, which could influence the investment decision for those seeking regular income.
For investors intrigued by OSI Systems' financial outlook and interested in gaining a deeper understanding of the stock's potential, there are additional InvestingPro Tips available at https://www.investing.com/pro/OSIS. By using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking further valuable insights that could guide their investment decisions.
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