NAPCO Releases Quarterly Earnings Results

NAPCO reported its third-quarter net sales increased 4% from the same quarter last year.

AMITYVILLE, N.Y. – NAPCO Security Technologies (NASDAQ:NSSC) today reported net sales for its third quarter ending March 31 totaled $17.9 million, up 4% from the same period last year. Net sales for the first nine months totaled $54.8 million, also a 4% increase from the same period last year.

The company reported 2 cents earnings per share (EPS) for the quarter, missing the Thomson Reuters consensus estimate of 6 cents, Analyst Ratings Network reports. NAPCO has been the subject of a number of recent research reports. Analysts at B. Riley reiterated a “buy” rating and set a $4.75 price target on shares of NSSC in a research note on Wednesday. Analysts at Northland Securities initiated coverage on shares in a research note on Feb. 27. They set an “outperform” rating and a $6.50 price target on the stock. Analysts at Zacks downgraded shares of NSSC to a “neutral” rating and set a $5.40 price target on the stock in a research note on Feb. 12.

RELATED: NAPCO Reports 158% Net Income Increase for 2Q Financial Earnings

Sales of the company’s door-locking products increased 10% in the third quarter as compared to the same quarter a year ago. Sales of these products increased 5% in the nine months ended March 31, 2015 as compared to the same period a year ago. NAPCO’s alarm division recurring revenue for the third quarter increased 46% and grew sequentially by 6%. Growth for the nine months was up 58% as compared to the same period last year.

“Our investments in the introduction and marketing of a number of new and exciting products with recurring revenue streams are paying off. As those products become a larger part of our revenue mix, our business model will become increasingly more resilient to external forces such as poor weather,” Richard Soloway, chairman and president, said in a press statement. “Furthermore, our gross margins, which have improved to more than 30% for the first nine months of the year, will continue to expand, driving our earnings and creating value for shareholders.”

NAPCO opened at $5.34 on Monday (May 11). The company has a 1-year low of $3.98 and a 1-year high of $6.27. The stock has a 50-day moving average of $5 and a 200-day moving average of $5. The company has a market cap of $101.86 million and a P/E ratio of 25.43.

NAPCO is a manufacturer of security products, encompassing access control systems, door security products, intrusion and fire alarm systems and video surveillance products. The products are used for commercial, residential, institutional, industrial and governmental applications.

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