Stocks
ETFs
Options
Commodities
Crypto
Currency
Pro Newsletters
Research Tools
Daily Feeds
Calendars
Economic Indicators
Class Actions
Calculators
Education
About Us
Working with TipRanks
Follow Us
Napco Security Technologies (NSSC)
NASDAQ:NSSC
RESEARCH TOOLSreports
Earnings Data
Report Date
May 12, 2025TBA Not Confirmed
Period Ending
2025 (Q3)Consensus EPS Forecast
0.3Last Year’s EPS
0.36Same Quarter Last Year
Moderate Buy
Based on 5 Analysts Ratings
---
Earnings Call Summary
Earnings Call Date:Feb 03, 2025
|% Change Since: -31.58%
|Next Earnings Date:May 12, 2025
Earnings Call Sentiment|Neutral
The earnings call revealed a mixed performance for NAPCO Security Technologies. While the company experienced strong growth in recurring revenue and maintained a solid financial position with no debt, it faced significant challenges with a decline in equipment sales and net sales, as well as increased operating expenses. The company's innovation pipeline and strong cash position provide optimism for future growth, but the current period's performance was hindered by external timing issues and distributor decisions.Company Guidance
During the fiscal second quarter of 2025, NAPCO Security Technologies reported mixed results, with a 15% increase in recurring revenue reaching $21.2 million, which contributed to a gross margin of 91% and improved the overall gross margin by 400 basis points to 57%. Despite these gains, net sales decreased by 9.7% to $42.9 million compared to the same period the previous year, primarily due to timing issues with distributors and specific large locking projects. Equipment sales saw a significant decline of 25% to $21.7 million, mainly attributed to reduced purchases by two major distributors. The company's adjusted EBITDA margin fell to 28% from 32% the prior year. Despite these challenges, NAPCO remains focused on growth opportunities, particularly in wireless fire and intrusion alarms, school security solutions, and recurring revenue services, with an optimistic outlook bolstered by a strong innovation pipeline and strategic focus on industry trends.Increase in Recurring Revenue
Recurring revenue increased by 15% in Q2 to $21.2 million, contributing to a gross margin of 91% and leading to a 400 basis-point improvement in total gross margin to 57%.
Strong Financial Position
The company has $99.2 million in cash and cash equivalents, with no debt as of December 31, 2024. Cash provided by operating activities for the three months increased by 80% to $13.5 million.
Innovation and Product Pipeline
The company is set to launch new offerings expanding recurring revenue opportunities, including the MVP hosted access system and Prima by NAPCO, aiming to address residential and small business markets.
---
NSSC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
---
NSSC Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
| Feb 03, 2025 | $36.70 | $26.93 | -26.62% |
| Nov 04, 2024 | $38.46 | $34.40 | -10.56% |
| Aug 26, 2024 | $55.10 | $47.06 | -14.59% |
| May 06, 2024 | $42.10 | $44.91 | +6.67% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
---
FAQ
When does Napco Security Technologies (NSSC) report earnings?
Napco Security Technologies (NSSC) is schdueled to report earning on May 12, 2025, TBA Not Confirmed.
What is Napco Security Technologies (NSSC) earnings time?
Napco Security Technologies (NSSC) earnings time is at May 12, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is NSSC EPS forecast?
NSSC EPS forecast for the fiscal quarter 2025 (Q3) is 0.3.
---