NASDAQ$NSSC

Napco Security Technologies Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

NAPCO reported record revenues, net income, and adjusted EBITDA for Q3 of fiscal 2024.

NAPCO Security Technologies reported a strong third quarter in fiscal 2024, achieving record revenues of $49.3 million, a 13% increase year-over-year. Net income also reached a record $13.2 million, up 38% from the same period last year, and adjusted EBITDA increased by 37% to $15.6 million. The company's recurring service revenues grew by 29% to $19.5 million, with a gross margin of 92%.

  • Net sales for the quarter increased 13% to $49.3 million, the highest quarterly sales in the company's history.
  • Recurring service revenue increased 29% to $19.5 million, representing 40% of total revenue.
  • Net income for the quarter increased 38% to $13.2 million, a quarterly record.
  • Adjusted EBITDA for the quarter increased 37% to $15.6 million, also a quarterly record.

Headline financials

Total Revenue

$49.3M

Previous: $43.5M+13.2%
EPS

$0.36

Previous: $0.29+24.1%
RSR growth

19532000.0%

No prior period
Gross margin

53.8%

No prior period
Adjusted EBITDA

$15.6M

Previous: $12.7M+22.2%
Capital Expenditures

-$1.04M

Previous: -$2.55M+59.0%
Free Cash Flow

$12.2M

Previous: $8.29M+46.5%
Net Income

$13.2M

Previous: $10.8M+21.7%
Operating Income

$14.5M

Previous: $11.9M+21.5%
Gross Profit

$26.5M

Previous: $22.7M+16.8%
R&D Expense

$2.76M

No prior period
Stock-Based Comp

$266K

Previous: $322K-17.4%

Revenue & EPS history

Napco · Revenue · Quarterly

$49.3M

Q3 2024+13.2%vs Q3 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 anticipates continued financial strength, product innovation, technical superiority, and strong profitability for the balance of fiscal 2024 and beyond.

Tailwinds

  • NAPCO is focused on further penetrating markets in school and classroom security, healthcare, and retail loss-prevention.
  • NAPCO recently announced the introduction of Prima by NAPCO, a new All-in-One Panel for security, fire, video and connected home.
  • NAPCO's record-breaking results for Q3 of fiscal year 2024, was primarily the result of the continued growth and profitability from recurring revenues as well as the strong sales from our Alarm Lock and Marks locking product lines.
  • Radio sales in Q3 improved over Q2, increasing by approximately 2%.
  • NAPCO expects radio sales to continue to be a key contributor to our hardware sales and continue to lead to the continued growth of our highly profitable recurring revenues.

Headwinds

  • There is more work to be done to improve the gross margin for hardware sales.
  • Forward-looking statements are based on current expectations, estimates, forecasts and projections of future performance based on management's judgment, beliefs, current trends, and anticipated product performance.
  • Actual results, performance or achievements could differ materially from those anticipated in such forward-looking statements as a result of certain factors, including those risk factors set forth in the Company's filings with the Securities and Exchange Commission
  • Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements.
  • NAPCO cannot guarantee future results, level of activity, performance, or achievements.

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 2024

Historical avgQ3 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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