Napco (NSSC) Set to Release Earnings Tomorrow: Anticipations and Insights
Earnings Report Overview: Napco is set to report earnings, having previously exceeded revenue expectations by 1.9% last quarter with revenues of $43.96 million, although this reflects a year-on-year decline of 10.8%.
Analyst Expectations: For the upcoming quarter, analysts predict an 11.7% revenue decline to $44.45 million and adjusted earnings of $0.26 per share, with estimates remaining stable over the past month.
Peer Performance Insights: Competitors in the specialized technology sector have shown varied results, with Mirion achieving 7.6% revenue growth and Arlo Technologies reporting a 1.5% increase, both surpassing analyst expectations.
Market Sentiment: Despite mixed performance from peers, Napco's stock has risen 2.9% recently, with an average analyst price target of $30.08 compared to its current price of $31.30.
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- Investor Meeting Schedule: NAPCO Security Technologies will participate in the Barclays 43rd Annual Industrial Select Conference on February 17, 2026, and the Citi 2026 Global Industrial Tech & Mobility Conference on February 19, 2026, where management will hold one-on-one meetings with institutional investors to enhance engagement and visibility.
- Market Leadership: As a leading designer and manufacturer of high-tech electronic security devices, NAPCO holds a strong market share in intrusion, fire alarm, access control, and locking systems, and is expected to benefit from the rapidly growing multi-billion dollar market.
- Product Diversity: The company consists of NAPCO and three wholly-owned subsidiaries, providing a diverse range of security solutions that cater to commercial, industrial, institutional, residential, and government sectors, thereby enhancing its competitive edge in the electronic security market.
- Forward-Looking Statements: The company notes in its press release that future performance may be impacted by the COVID-19 pandemic and other unpredictable factors, and while management remains optimistic about future growth, actual results may significantly differ from expectations.
- Investor Meeting Schedule: NAPCO Security Technologies will engage in one-on-one meetings with institutional investors at upcoming conferences, aiming to strengthen investor relations and showcase the company's growth potential.
- Company Overview: NAPCO is a leading manufacturer of high-tech electronic security devices, offering wireless services for intrusion, fire alarms, and access control, with products widely used in commercial, industrial, and government sectors, demonstrating strong market competitiveness.
- Market Outlook: With the rapid expansion of the electronic security market, NAPCO is expected to benefit from growth opportunities in the multi-billion dollar sector, further driving sustainable revenue growth through its innovative and technically excellent products.
- Future Prospects: The company stated that despite challenges posed by the COVID-19 pandemic, it will continue to focus on launching new products and growing service revenue, reflecting confidence in its future development.
- Quarterly Dividend Increase: Napco Security Technologies has raised its quarterly dividend from $0.14 to $0.15 per share, marking a 7.1% increase that reflects the company's ongoing improvement in profitability and cash flow management, thereby boosting investor confidence.
- Stable Dividend Yield: The forward yield stands at 1.46%, providing a relatively stable return in the current market environment, which attracts income-seeking investors and further solidifies the company's shareholder base.
- Shareholder Record Dates: The dividend will be payable on April 3, with a record date of March 12 and an ex-dividend date also on March 12, ensuring that shareholders receive their earnings promptly and enhancing the company's credibility among investors.
- Strong Financial Performance: Napco reported a GAAP EPS of $0.38 and revenue of $48.2 million for Q2 2026, indicating that the company is not only experiencing sustained growth but also steadily improving its profitability, which enhances market confidence in its future prospects.
- Analyst Rating Changes: Top Wall Street analysts have adjusted their outlook on ROKU stock, indicating a divergence in market sentiment regarding the company's future prospects, which could influence investor decisions and market mood.
- Market Reaction Monitoring: While specific rating changes were not detailed, analysts' opinions typically have a direct impact on stock prices, prompting investors to closely monitor subsequent market developments.
- Impact of Rating Changes: Upgrades or downgrades from analysts can lead to short-term volatility in ROKU's stock, making it essential for investors to consider these rating changes in their investment strategies.
- Investor Recommendations: When considering the purchase of ROKU stock, investors are advised to reference the latest analyst ratings and market trends to make more informed investment decisions.
- Significant Revenue Growth: Napco Security Technologies reported total revenue of $48.2 million for Q2, marking a 12.2% year-over-year increase and setting a new record, indicating strong market demand and sustained growth potential in the security technology sector.
- Equipment Revenue Continues to Rise: Equipment revenue reached $24.3 million, up 12% year-over-year, reflecting robust performance in door locking and intrusion alarm segments, bolstered by price increases implemented at the end of fiscal 2025.
- Improved Profitability: The company achieved operating income of $14.8 million, a 32% increase year-over-year, with net income rising 29% to $13.5 million, representing 28% of quarterly revenue, showcasing success in enhancing operational efficiency and margins.
- Management Confidence Boosted: The addition of Chief Revenue Officer Joe Paczynski, with over 35 years of business development experience, is expected to further drive revenue growth and strengthen the company's leadership in future market competition.
- Significant Revenue Growth: NAPCO's revenue for Q2 of fiscal 2026 rose 12.2% year-over-year to $48.2 million, surpassing the market consensus of $47.8 million, indicating strong performance in the market.
- Equipment Revenue Increase: Equipment revenue grew 12.0% year-over-year to $24.3 million, contributing to an overall gross profit increase, with margins rising from 57.0% last year to 58.6%, reflecting successful pricing and cost control strategies.
- Strong Service Revenue: Recurring service revenue surged 12.5% year-over-year to $23.8 million, accounting for approximately 50% of total revenue, with a gross margin of 90.2%, laying a solid foundation for the company's future growth.
- Adjusted EBITDA Growth: Adjusted EBITDA increased by 26% to $15.4 million, with margins expanding from 28.4% to 31.9%, demonstrating ongoing improvements in profitability and further boosting investor confidence.










