NASDAQ$NSSC

Napco Security Technologies Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported a record Q2 sales and strong recurring service revenues.

NAPCO Security Technologies reported a 5% increase in net sales, reaching a record $27.2 million for the fiscal second quarter. Recurring service revenues grew by 42% to $8.2 million, with a gross margin of 85%. Net income increased by 38% over the fiscal first quarter.

  • Net sales increased by 5% year-over-year to a record $27.2 million.
  • Recurring service revenues increased by 42% year-over-year to $8.2 million with a gross margin of 85%.
  • Net income increased by 38% over the fiscal first quarter.
  • Cash and cash equivalents increased to $26.8 million.

Headline financials

Total Revenue

$27.2M

Previous: $25.8M+5.3%
EPS (adj)

$0.09

Previous: $0.10-10.0%
Capital Expenditures

-$389K

Previous: -$1.06M+63.4%
Free Cash Flow

$2.81M

Previous: $2.51M+11.9%
Net Income

$3.2M

Previous: $3.57M-10.5%
Operating Income

$3.67M

Previous: $3.99M-8.1%
Gross Profit

$11.4M

Previous: $12.1M-6.0%
Cash & Equivalents

$26.8M

Previous: $11.8M+127.1%
Total Assets

$108M

Previous: $101M+6.8%
Stock-Based Comp

$84K

Previous: $308K-72.7%

Revenue & EPS history

Napco · Revenue · Quarterly

$27.2M

Q2 2021+5.3%vs Q2 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

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

  • Recurring Services
    $16.1M

Forward guidance

NAPCO is well-positioned for the expected economic recovery and remains focused on generating continued strong recurring revenue growth and increasing overall gross margins.

Tailwinds

  • Well-positioned for the economic recovery.
  • Focused on generating continued strong recurring revenue growth.
  • Will continue efforts to expand recurring revenue product offerings into all segments of the Company.
  • Strong underlying business fundamentals.
  • Market-leading brands.

Headwinds

  • COVID-19 pandemic has caused some delay in spending at certain K-12 schools, colleges, and universities.
  • Postponements of planned security upgrades.
  • The communication paradigm continues to "sunset" away from legacy copper and 3G infrastructure.
  • Dependence on distributors for product sales, which can be affected by their access to installation sites.
  • Potential impact of competition and technological changes in the security market.

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 Q2 2021

Historical avgQ2 2021

+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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