NASDAQ$NSSC

Napco Security Technologies Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

NAPCO achieved record revenues, net income, and adjusted EBITDA for Q1 2024.

NAPCO Security Technologies reported a strong start to fiscal year 2024, with record first-quarter sales of $41.7 million, a 6% increase year-over-year. Net income soared by 239% to $10.5 million, and adjusted EBITDA increased by 174% to $12.9 million. Recurring service revenues grew by 25% to $17.3 million, contributing significantly to the overall growth and profitability.

  • Net sales increased by 6% to $41.7 million, marking the highest Q1 sales in the company's history.
  • Recurring service revenues increased by 25% to $17.3 million with a gross margin of 90%.
  • Net income increased by 239% to a record $10.5 million.
  • Adjusted EBITDA increased by 174% to a record $12.9 million.

Headline financials

Total Revenue

$41.7M

Previous: $39.5M+5.5%
EPS (adj)

$0.28

Previous: $0.17+64.7%
Adjusted EBITDA

$12.9M

Previous: $8.32M+54.5%
Capital Expenditures

-$256K

Previous: -$372K+31.2%
Free Cash Flow

$10.2M

Previous: $6.03M+69.5%
Net Income

$10.5M

Previous: $6.4M+63.7%
Operating Income

$11.6M

Previous: $7.25M+59.4%
Gross Profit

$22.4M

Previous: $18.2M+23.4%
Cash & Equivalents

$43.6M

Previous: $29.4M+48.0%
Total Assets

$177M

Previous: $148M+19.2%
Stock-Based Comp

$307K

Previous: $477K-35.6%

Revenue & EPS history

Napco · Revenue · Quarterly

$41.7M

Q1 2024+5.5%vs Q1 2023
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 encouraged by the improved gross margin for hardware sales and anticipate that it could improve further as the fiscal year progresses, as well as the company's net income and Adjusted EBITDA margin indicating the financial strength of their business. They will continue their dividend program and strive to accomplish their goal of continued financial strength, product innovation, technical superiority, and strong profitability, for the rest of fiscal 2024 and beyond.

Tailwinds

  • Improved gross margin for hardware sales of 28%.
  • Anticipation of further improvement in hardware gross margin as the fiscal year progresses based on historical seasonal trends.
  • Net income margin of 25% indicates the financial strength of the business.
  • Adjusted EBITDA margin of 31% reflects business's financial health.
  • Continuation of the dividend program with a dividend of $0.08 per share.

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 2024

Historical avgQ1 2024

+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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