Napco to report quarterly results: what to expect from NSSC

what happened

Security systems maker Napco will publish its quarterly results on Monday morning. According to stockstory.org, the company's revenue last quarter came to $55.81 million, up 10% from a year earlier, and its earnings per share beat analyst estimates. Still, Napco has missed Wall Street's revenue forecasts several times over the last two years.

For this quarter, the market expects revenue to grow 5.9% year on year, a clear slowdown from the 11.7% increase recorded in the same quarter last year. Analysts have mostly reconfirmed their estimates over the past 30 days. The average analyst price target, per the same source, is $50.67, against a current share price of $39.38.

Stockstory.org also highlights two peers in the tech hardware and electronics sector. OSI Systems grew revenue 4.9% and beat expectations by 2.6%, yet its shares fell 4.2% after the report. Mirion lifted revenue 24.5% and topped estimates by 1.1%, and its shares rose 9%. Stocks in the sector gained 1.7% on average over the last month, while Napco gained 8.9% over the same period.

why it matters

The key question for the market is whether Napco can confirm the slowdown in revenue growth and meet expectations after its sharp monthly rally. The report matters mainly to investors in the company and its small electronics sector, and has little effect on the broader market.

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