NASDAQ$NSSC

Napco Security Technologies Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

NAPCO's third fiscal quarter 2020 results were announced, featuring sales increase and record revenue.

NAPCO Security Technologies reported a 4% increase in sales, reaching a record $26.2 million for the third fiscal quarter of 2020. Net income increased by 16% to a record $3.6 million, with earnings per share rising by 18% to $0.20. Recurring service revenues grew by 37% to $6.2 million.

  • Sales increased 4% to a third fiscal quarter record of $26.2 million.
  • Net income increased 16% to a third quarter record of $3.6 million.
  • Earnings per share increased 18% to $0.20.
  • Recurring service revenues grew 37% to $6.2 million.

Headline financials

Total Revenue

$26.2M

Previous: $25.1M+4.4%
EPS (adj)

$0.10

Previous: $0.09+11.1%
RSR growth

37.0%

No prior period
Adjusted EBITDA

$4.9M

No prior period
Capital Expenditures

-$1.32M

Previous: -$1.6M+17.2%
Free Cash Flow

$2.29M

Previous: $1.52M+50.4%
Net Income

$3.62M

Previous: $3.12M+15.8%
Operating Income

$4.05M

Previous: $3.65M+10.9%
Gross Profit

$12M

Previous: $10.7M+11.4%
Cash & Equivalents

$11M

Previous: $5.5M+100.0%
Total Assets

$102M

Previous: $79.6M+27.8%
Stock-Based Comp

$172K

No prior period

Revenue & EPS history

Napco · Revenue · Quarterly

$26.2M

Q3 2020+4.4%vs Q3 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Napco · $6.2M total across 1 segment · Q3 2020

  • Recurring Services
    $6.2M+37.0%

Forward guidance

NAPCO is carefully monitoring and fine-tuning the best ways to service customers during the COVID-19 pandemic. The company believes it is well-positioned in the non-discretionary, commercial, high gross margin sector of the security industry to weather the storm, with continued strong levels of recurring service growth and expansion of profitability expected to continue into the future.

Tailwinds

  • Well-positioned in the non-discretionary, commercial, high gross margin sector of the security industry.
  • Continued strong levels of recurring service growth.
  • Expansion of profitability expected to continue into the future.
  • Focused commitment to identifying new, large growth opportunities.
  • Adding incremental recurring service revenue sales and income.

Headwinds

  • Shelter in place directives are continually changing.
  • Market challenges that can neither be fully anticipated nor quantified due to COVID-19.
  • Potential impact of COVID-19 on the business.
  • Uncertainty in the current economic environment.
  • Possible market challenges.

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 Q3 2020

Historical avgQ3 2020

+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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