NASDAQ$NSSC

Napco Security Technologies Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

NAPCO's Q4 2022 earnings were announced, featuring record sales and net income for the quarter.

NAPCO Security Technologies reported a strong fourth quarter with a 22% increase in net sales, reaching a record $43.2 million. Recurring service revenues increased by 33% to $12.7 million, and net income rose by 36% to a record $7.5 million. The company's performance was driven by growth in both equipment and recurring service revenues, with gross margins for recurring service revenue remaining robust at 87%.

  • Net sales increased by 22% to a quarterly record of $43.2 million.
  • Recurring service revenue increased by 33% to $12.7 million.
  • Net income increased by 36% to a record $7.5 million.
  • Adjusted EBITDA increased by 29% to $9.3 million.

Headline financials

Total Revenue

$43.2M

Previous: $35.4M+22.0%
EPS (adj)

$0.20

Previous: $0.14+42.9%
Capital Expenditures

$293K

Previous: $441K-33.6%
Free Cash Flow

-$374K

Previous: $6.12M-106.1%
Net Income

$7.5M

Previous: $5.03M+49.3%
Operating Income

$8.19M

Previous: $5.98M+36.9%
Gross Profit

$19.2M

Previous: $15.1M+26.9%
Cash & Equivalents

$41.7M

Previous: $34.8M+19.9%
Total Assets

$149M

Previous: $123M+20.5%
Stock-Based Comp

$270K

Previous: $163K+65.6%

Revenue & EPS history

Napco · Revenue · Quarterly

$43.2M

Q4 2022+22%vs Q4 2021
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 focused on delivering value to shareholders by generating revenue growth and increased profitability for fiscal year 2023 and beyond. The company is expanding recurring revenue streams with existing and new products, such as AirAccess® products, and continues to focus on providing seamless security solutions.

Tailwinds

  • School security jobs are returning.
  • Recurring service revenue remains strong.
  • Expanding recurring revenue streams with existing and new products.
  • Seasoned management team with experience dealing with supply chain shortages
  • Demand for products and services continues to be very strong.

Headwinds

  • Ongoing supply chain challenges, electronic component shortages and logistics delays.
  • Historically high backlog levels may continue throughout calendar 2022, particularly for electronic products.
  • Hardware margins continue to be affected by the ongoing impact of supply chain constraints and higher component prices.
  • Volatility associated with shortages of electronic components
  • Increased shipping costs and raw material price inflation.

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 Q4 2022

Historical avgQ4 2022

+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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