Security systems manufacturer Napco (NASDAQ: NSSC) will be reporting earnings this Monday morning. Here’s what investors should know.
Napco beat analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $43.96 million, down 10.8% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates.
Is Napco a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Napco’s revenue to decline 11.7% year on year to $44.45 million, a reversal from the 12.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.26 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Napco has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Napco’s peers in the specialized technology segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Mirion delivered year-on-year revenue growth of 7.6%, beating analysts’ expectations by 3.1%, and Arlo Technologies reported revenues up 1.5%, topping estimates by 4.8%. Mirion traded down 11.1% following the results while Arlo Technologies was up 1.6%.
Read our full analysis of Mirion’s results here and Arlo Technologies’s results here.
Investors in the specialized technology segment have had steady hands going into earnings, with share prices flat over the last month. Napco is up 2.9% during the same time and is heading into earnings with an average analyst price target of $30.08 (compared to the current share price of $31.30).
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