NASDAQ$NSSC

Napco Security Technologies Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

NAPCO's first quarter of fiscal year 2023 resulted in record sales and increased recurring service revenues.

NAPCO Security Technologies reported a 27% increase in net sales to a record $39.5 million for the first quarter of fiscal 2023. Recurring service revenues increased by 35% to $13.8 million, with gross margins of 88%. Net income was $6.4 million, and Adjusted EBITDA was $8.3 million.

  • Net sales increased by 27% to a Q1 record of $39.5 million.
  • Recurring service revenue increased by 35% to $13.8 million with gross margins of 88%.
  • Net income was $6.4 million, compared to $7.8 million for the same period last year.
  • Adjusted EBITDA increased by 77% to $8.3 million.

Headline financials

Total Revenue

$39.5M

Previous: $31.1M+27.2%
EPS (adj)

$0.17

Previous: $0.11+54.5%
Adjusted EBITDA

$8.32M

Previous: $8.61M-3.4%
Capital Expenditures

-$372K

Previous: -$522K+28.7%
Free Cash Flow

$6.03M

Previous: $7.23M-16.6%
Net Income

$6.4M

Previous: $7.75M-17.4%
Operating Income

$7.25M

Previous: $4.18M+73.5%
Gross Profit

$18.2M

Previous: $13.5M+35.0%
Cash & Equivalents

$29.4M

Previous: $37.7M-22.0%
Total Assets

$148M

Previous: $125M+18.5%
Stock-Based Comp

$477K

Previous: $89K+436.0%

Revenue & EPS history

Napco · Revenue · Quarterly

$39.5M

Q1 2023+27.2%vs Q1 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Napco · $16.1M total across 1 segment · Q4 2023

  • Recurring Services
    $16.1M

Forward guidance

NAPCO is confident in its ability to navigate the challenging operating environment and deliver strong growth in both equipment and recurring revenue by leveraging its experienced management team and focusing on seamless security solutions.

Tailwinds

  • Demand for products and services remains strong.
  • Management team has experience in dealing with supply chain shortages.
  • Focus on providing seamless security solutions.
  • Growth in recurring revenue is expected to continue.
  • New products like Air Access are expected to generate new recurring revenue.

Headwinds

  • Challenging operating environment.
  • Ongoing logistical challenges within supply chains.
  • Uncertain economic environment.
  • Volatility associated with current global supply chain constraints.
  • Significant inventory increase due to purchasing difficult to get electronic components.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+1.4%

Avg return

Earnings day

+2.7%

Avg return

5 days after

+7.5%

Avg return

30 days after

45%

29 / 64 earnings

Positive

+33.0%

Q1 2024

Best reaction

-26.6%

Q2 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-15.2%-12.6%-22.9%
Q2 2026+11.4%+18.3%+18.1%
Q1 2026-6.8%-4.6%-7.1%
Q3 2025+3.6%+10.9%+20.2%
Q2 2025-26.6%-29.9%-33.7%
Q1 2025-6.9%+0.2%+5.7%
Q4 2024-16.4%-16.4%-25.2%
Q3 2024+7.7%+4.5%+22.0%
Q2 2024+21.3%+25.7%+14.9%
Q1 2024+33.0%+35.6%+69.5%
Q4 2023+8.9%-38.4%-38.6%
Q3 2023+20.9%+22.8%+39.2%
Q2 2023+14.3%+1.6%+8.8%
Q1 2023+8.9%+13.0%+5.0%
Q4 2022+16.3%+13.9%+17.2%
Q3 2022-2.2%+4.0%+21.9%
Q2 2022-2.9%-3.9%-0.1%
Q1 2022-5.9%-3.4%+2.5%
Q4 2021+18.5%+8.7%+18.3%
Q3 2021-1.8%-2.9%+1.5%
Q2 2021+15.1%+20.6%+33.5%
Q1 2021+10.3%+16.3%+25.3%
Q4 2020-4.8%-3.3%+5.6%
Q3 2020+12.2%+19.1%+34.0%
Q2 2020-25.6%-23.3%-30.0%
Q1 2020-0.1%-1.6%+4.3%
Q4 2019-24.0%-25.3%-26.2%
Q3 2019+12.0%+10.6%+21.2%
Q2 2019+21.8%+29.7%+32.9%
Q1 2019+12.9%+15.0%+7.8%
Q4 2018+2.0%+2.0%-3.6%
Q3 2018+7.9%+7.3%+7.8%
Q2 2018-0.4%-0.5%+1.6%
Q1 2018-3.4%-5.1%-5.6%
Q4 2017+18.6%+9.0%+28.4%
Q3 2017-5.0%-10.0%-6.7%
Q2 2017-0.6%-2.7%+6.5%
Q1 2017+4.8%+6.4%+19.1%
Q4 2016-5.9%-7.3%-2.0%
Q3 2016-0.7%
Q2 2016-2.6%
Q1 2016-4.4%
Q4 2015-3.1%
Q3 2015+2.7%
Q2 2015+8.0%
Q1 2015-6.1%
Q4 2014+5.1%
Q3 2014+7.2%
Q2 2014-5.9%
Q1 2014-1.3%
Q4 2013-1.8%
Q3 2013-1.8%
Q2 2013+2.9%
Q1 2013-3.7%
Q4 2012+7.6%
Q3 2011-7.7%
Q3 2012-7.7%
Q2 2011-10.7%
Q2 2012-10.7%
Q1 2012-1.8%
Q4 2011+1.8%
Q1 2011+1.8%
Q4 2010-2.2%
Q3 2010-0.9%

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