NSSC Earnings Prediction
The chart below shows how NSSC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, NSSC sees a +0.18% change in stock price 10 days leading up to the earnings, and a +3.63% change 10 days following the report. On the earnings day itself, the stock moves by +6.88%. This data can give you a slight idea of what to expect for the next quarter's release.
NSSC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
42.93M
-9.70%
-2.43%
Gross Margin
57.04%
8.44%
1.97%
Operating Margin
26.02%
-10.37%
-3.41%
Net Margin
24.38%
-8.07%
-4.09%
EPS
0.28
-17.65%
-6.67%
No Data Available
NSSC Earnings Analysis
NAPCO Security Technologies Inc Corporation (NSSC.O) Earnings Conference Call
Positive
Recurring Revenue Increase: Recurring revenue increased by 15% in Q2 to $21,200,000 compared to $18,500,000 for the same period last year, reflecting strong demand for services.
Gross Margin Improvement: Gross margin improved by 400 basis points to 57%, driven by the high profitability of recurring revenue, which achieved a gross margin of 91%.
Operating Activities Cash Surge: Cash provided by operating activities increased by 80% to $13,500,000 for the quarter, demonstrating strong cash flow generation.
Cash Position Stability: The company maintained a solid cash position with $99,200,000 in cash and cash equivalents, a 2% increase from the previous period, despite paying $22,600,000 in dividends and stock repurchases.
R&D Cost Increase: Research and development costs increased by 22% to $3,100,000, reflecting a commitment to innovation and product development, which is expected to drive future growth.
Negative
Quarterly Sales Decline: Net sales for the quarter decreased 9.7% to $42,900,000 compared to $47,500,000 for the same period last year, indicating a significant decline in revenue.
Quarterly Equipment Sales Decline: Equipment sales for the quarter decreased 25% to $21,700,000 compared to $29,000,000 last year, primarily due to reduced sales from two larger distributors and timing issues with large projects.
Equipment Revenue Decline: Gross profit for equipment revenues in Q2 decreased by 39% to $5,100,000 with a gross margin of 24%, down from $8,400,000 and a gross margin of 29% last year, reflecting the impact of lower sales levels.
Operating Income Decline: Operating income for the quarter decreased 19% to $11,200,000 compared to $13,800,000 for the same period last year, highlighting a decline in profitability.
Quarterly Net Income Decline: Net income for the quarter decreased 17% to $10,500,000, or $0.28 per diluted share, down from $12,600,000, or $0.34 per diluted share, for the same period last year.
NSSC FAQs
How does NSSC typically perform around its earnings report dates?
Is NAPCO Security Technologies Inc (NSSC) Q2 2025 Earnings Call Summary positive or negative?
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NSSC Earning Call Sentiment
Earnings call transcript: NAPCO Q2 2025 reveals earnings miss, stock drops
NSSC.O
0.97%Positive
The earnings call reflects mixed signals: strong recurring revenue growth and cash flow, but declining equipment sales and operating income. Management's optimism for future growth and strategic focus areas are tempered by unclear guidance and slowing recurring revenue growth. The Q&A section revealed management's evasiveness on certain metrics, adding uncertainty. Despite positive elements like a robust cash position and a share buyback plan, the unclear guidance and mixed financial results suggest a neutral sentiment, with the stock likely moving within -2% to 2% over the next two weeks, considering the company's market cap.
