OSI Systems Inc.’s shares rose more than 6 percent on Tuesday after the security and medical scanner manufacturer reported fiscal second-quarter net income grew by one-third year-over-year.
The Hawthorne company reported net income of $12.3 million (61 cents a share) for the period ended Dec. 31, compared with $9.2 million (47 cents) in the same period a year earlier.
Revenue rose 11 percent to $188 million. Analysts surveyed by Capital IQ on average had expected net income of 60 cents per share on $185 million in revenue.
Revenue from the company’s security division, which sells full-body scanners for airport and other security checkpoints, grew 16 percent to $89 million. Operating income from OSI’s health care division, which makes diagnostic scanners and similar equipment, rose 47 percent to $8.3 million. The company said the U.S. market has improved since the recession, which had depressed sales to hospitals and doctor’s offices.
“Our success was evident throughout all of OSI as each of our divisions reported both sales and earnings growth leading to record sales and earnings in our second quarter,” Chief Executive Deepak Chopra said in a statement.
OSI also raised its earnings and revenue expectations. The company now expects fiscal 2012 earnings to range between $2.30 and $2.42 a share on revenue of between $750 million and $770 million. That’s up from earlier guidance of $2.27 to $2.40 a share profit on $740 million to $760 million in revenue.
The Wall Street consensus is for net income of $2.32 a share on revenue of more than $748 million.
Chopra noted that after quarter ended the company signed a $400 million, six-year security agreement with Servicio de Administración Tributaria, Mexico’s tax and customs authority.
“This turnkey screening services agreement will have a profound impact on our business and our ability to enhance shareholder value,” he said.
Shares closed up $3.35, or 6.3 percent, to $56.46 on the Nasdaq.