The delivery order stems from a three-year, multi-award, Indefinite Delivery, Indefinite Quantity (IDIQ) contract valued at $248 million for all delivery orders awarded to Rapiscan and six other companies earlier this year by the U.S. Army. ------------
Benchmark(Josephine Milward) is reiterating its Buy rating on shares of OSI Systems (NASDAQ: OSIS) while raising its price target from $44 to $48 ahead of earnings.
The company is expected to release its quarterly earnings on October 25 ahead of the opening bell. The firm has a mixed outlook with the Street as it forecasts EPS of $0.24 on $147 million in sales. The Street is currently looking for EPS of $0.22 with $152 million in sales. The firm notes that backlog was up 27 percent year over year to $304 million.
The firm highlights upside to previous expectations for the year due to the recent Army contract which is valued at $98 million. The contract validates the company’s strategy of expanding into integrated security solutions and will most likely be incorporated into 2012 figures.
An Analyst at Benchmark comments, "We believe successful execution of the Puerto Rico and Army integrated base protection programs will drive significant new opportunities long-term; however, execution is a potential risk on these programs since OSI is new to delivering fully integrated security solutions and cargo screening services."
For Fiscal 2012, the firm forecasts EPS of $2.27 with $731 million in sales.
For more ratings news on OSI Systems click here and for the rating history of OSI Systems click here.
Shares of OSI Systems closed at $42.49 yesterday, with a 52 week range of $31.00-$45.28.