Latest news with #NapcoSecurityTechnologies
Business Upturn
15-06-2025
- Business
- Business Upturn
Napco (NSSC) Under Scrutiny: Investor Suit and Sales Slump Shake Investor Confidence
SAN FRANCISCO, June 15, 2025 (GLOBE NEWSWIRE) — Shares in Napco Security Technologies, Inc. (NASDAQ: NSSC) are trading down nearly 21% year-to-date, as the security technology company continues to face heightened scrutiny as it navigates both legal and operational challenges. Most recently, on May 5, 2025, Napco released its third-quarter financial results for fiscal year 2025, revealing mixed performance metrics amid an ongoing securities class action lawsuit that centers on its distribution practices and sales forecasting. Hagens Berman is investigating the alleged claims and urges Napco investors who suffered substantial losses to submit your losses now. Class Period: Feb. 5, 2024 – Feb. 3, 2025 Lead Plaintiff Deadline: June 24, 2025 Visit: Contact the Firm Now: [email protected] 844-916-0895 Third Quarter Financial Overview Napco's third-quarter results showed a 10.8% year-over-year drop in net sales, totaling $43.96 million. While the company managed to surpass earnings-per-share expectations—reporting $0.36 per share versus a $0.29 forecast—overall revenue missed Wall Street estimates, and net income declined by over 23% compared to the previous year. The company attributed the sales shortfall primarily to inventory reductions by key distributors, a factor that has become central to the ongoing lawsuit. Background of the Securities Class Action The class action, filed as Patel v. Napco Security Technologies, Inc., et al ., alleges that Napco's leadership misled investors about its ability to accurately predict hardware demand and sustain ambitious margin targets for fiscal 2026. The complaint claims that despite public assurances of strong hardware division growth and effective forecasting, Napco failed to disclose vulnerabilities in its distribution network and the risks associated with relying on a limited number of major distributors. The situation escalated after the company's February 3, 2025, earnings report, which revealed a 25% decrease in equipment sales and prompted Napco to withdraw its 45% EBITDA margin target for fiscal 2026. These disclosures led to a dramatic 26% decline in Napco's share price in a single trading session, erasing nearly $10 per share in value. Allegations and Share Price Impact Plaintiffs allege that Napco's optimistic statements about its sales pipeline and margin outlook were misleading, given the company's inability to accurately forecast demand and the impact of distributor inventory adjustments. The lawsuit contends that these omissions artificially inflated Napco's stock price during the class period, causing substantial losses when the true financial picture emerged. Specifically, on February 3rd, Napco released disappointing second-quarter fiscal 2025 results, revealing a substantial 25% drop in equipment sales compared to the prior year's second quarter, along with significant declines in gross margin and gross profit for equipment revenue. The company attributed this disappointing performance to 'reduced sales to two of our larger distributors,' with one distributor explicitly citing efforts to reduce its inventory levels. These disclosures caused Napco's shares to plummet 26% over a single trading day. Hagens Berman's Investigation Prominent shareholder rights firm Hagens Berman is actively investigating the allegations against Napco, focusing on whether the company misled investors regarding its sales forecasting and distribution practices. 'Investors deserve transparency, especially when a company's future growth is tied so closely to its ability to manage demand and distribution. When those fundamentals are called into question, as we believe they are here, it's our job to ensure shareholders get clear answers and accountability,' said Reed Kathrein, the Hagens Berman partner overseeing the investigation. If you invested in Napco and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now » If you'd like more information and answers to frequently asked questions about the Napco case and our investigation, read more » Whistleblowers: Persons with non-public information regarding Napco should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected]. About Hagens Berman Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at Follow the firm for updates and news at @ClassActionLaw. Contact: Reed Kathrein, 844-916-0895 Disclaimer: The above press release comes to you under an arrangement with GlobeNewswire. Business Upturn takes no editorial responsibility for the same. Ahmedabad Plane Crash
Yahoo
05-05-2025
- Business
- Yahoo
Napco (NASDAQ:NSSC) Beats Q1 Sales Targets, Stock Soars
Security systems manufacturer Napco (NASDAQ:NSSC) reported Q1 CY2025 results beating Wall Street's revenue expectations , but sales fell by 10.8% year on year to $43.96 million. Its GAAP profit of $0.28 per share was 3.7% above analysts' consensus estimates. Is now the time to buy Napco? Find out in our full research report. Revenue: $43.96 million vs analyst estimates of $43.14 million (10.8% year-on-year decline, 1.9% beat) EPS (GAAP): $0.28 vs analyst estimates of $0.27 (3.7% beat) Adjusted EBITDA: $13.16 million vs analyst estimates of $11.8 million (29.9% margin, 11.5% beat) Operating Margin: 25.4%, down from 29.4% in the same quarter last year Free Cash Flow Margin: 84.2%, up from 24.3% in the same quarter last year Market Capitalization: $865.6 million Richard Soloway, Chairman and CEO, commented, "With the completion of our third quarter of Fiscal 2025, we are pleased with our 30% adjusted EBITDA return and the continued strong gross margin of 91% of our RSR and the increase of 10.6% to $21.6 million. RSR represents 49% of total revenue in Q3 and our RSR had a prospective run rate of approximately $89 million based on our April 2025 recurring service revenue. The decrease in our equipment revenue for the quarter was primarily due to reduced sales to three of our larger distributors, two of whom were managing their corporate-wide existing inventory levels and the third which was driven by the timing of project work with their customer. Protecting everything from schools to government facilities since 1969, Napco Security Technologies (NASDAQ:NSSC) manufactures electronic security devices, access control systems, and communication services for intrusion and fire alarm systems. A company's long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. With $181.2 million in revenue over the past 12 months, Napco is a small player in the business services space, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and numerous distribution channels. On the bright side, it can grow faster because it has more room to expand. As you can see below, Napco's 10.9% annualized revenue growth over the last five years was impressive. This is a great starting point for our analysis because it shows Napco's demand was higher than many business services companies. Long-term growth is the most important, but within business services, a half-decade historical view may miss new innovations or demand cycles. Napco's recent performance shows its demand has slowed significantly as its annualized revenue growth of 3.7% over the last two years was well below its five-year trend. This quarter, Napco's revenue fell by 10.8% year on year to $43.96 million but beat Wall Street's estimates by 1.9%. Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and indicates its products and services will see some demand headwinds. At least the company is tracking well in other measures of financial health. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Napco has been a well-oiled machine over the last five years. It demonstrated elite profitability for a business services business, boasting an average operating margin of 20.5%. Looking at the trend in its profitability, Napco's operating margin rose by 15.4 percentage points over the last five years, as its sales growth gave it immense operating leverage. This quarter, Napco generated an operating profit margin of 25.4%, down 4.1 percentage points year on year. This contraction shows it was less efficient because its expenses increased relative to its revenue. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Napco's EPS grew at an astounding 24.4% compounded annual growth rate over the last five years, higher than its 10.9% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. We can take a deeper look into Napco's earnings to better understand the drivers of its performance. As we mentioned earlier, Napco's operating margin declined this quarter but expanded by 15.4 percentage points over the last five years. Its share count also shrank by 2.1%, and these factors together are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. In Q1, Napco reported EPS at $0.28, down from $0.36 in the same quarter last year. Despite falling year on year, this print beat analysts' estimates by 3.7%. Over the next 12 months, Wall Street expects Napco's full-year EPS of $1.22 to shrink by 1.8%. It was encouraging to see Napco beat analysts' revenue expectations this quarter. We were also happy its EPS and EBITDA outperformed Wall Street's estimates. Overall, we think this was a solid quarter with some key areas of upside. The stock traded up 8.3% to $25.76 immediately after reporting. Indeed, Napco had a rock-solid quarterly earnings result, but is this stock a good investment here? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free.
Business Wire
05-05-2025
- Business
- Business Wire
Law Offices of Frank R. Cruz Encourages Napco Security Technologies, Inc. (NSSC) Investors To Inquire About Securities Fraud Class Action
LOS ANGELES--(BUSINESS WIRE)-- The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of investors who purchased Napco Security Technologies, Inc. ('Napco' or the 'Company') (NASDAQ: NSSC) securities between , inclusive (the 'Class Period'). Napco investors have until June 24, 2025 to file a lead plaintiff motion. Law Offices of Frank R. Cruz Encourages Napco Security Technologies, Inc. (NSSC) Investors To Inquire About Securities Fraud Class Action Share IF YOU SUFFERED A LOSS ON YOUR NAPCO SECURITY TECHNOLOGIES, INC. (NSSC) INVESTMENTS, CLICK HERE TO SUBMIT A CLAIM TO POTENTIALLY RECOVER YOUR LOSSES IN THE ONGOING SECURITIES FRAUD LAWSUIT. You can also contact the Law Offices of Frank R. Cruz to discuss your legal rights by email at info@ by telephone at (310) 914-5007, or visit our website at What Happened? On February 3, 2025, Napco released its second quarter fiscal 2025 financial results, revealing a reduction in hardware sales due 'primarily…to reduced sales from 2 of the company's larger distributors.' The Company pulled back their long-term 45% EBITDA margin target, stating that it '[doesn't] know' if the target can be reached by the end of fiscal 2026. On this news, Napco's stock price fell $9.77, or 26.6%, to close at $26.93 per share on February 3, 2025, thereby injuring investors. What Is The Lawsuit About? The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Company was simply not equipped to adequately forecast demand for its products or otherwise minimized the impact of potential demand fluctuations to continue to promote its lofty margin projections which relied upon continually increased sales volumes; and (2) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times. Contact Us To Participate or Learn More: If you purchased Napco securities, wish to learn more about this action, or have any questions concerning this announcement or your rights or interests with respect to these matters, please click HERE or contact us at: Law Offices of Frank R. Cruz 2121 Avenue of the Stars, Suite 800 Telephone: 310-914-5007 Email: info@ Visit our website at: This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Yahoo
02-04-2025
- Business
- Yahoo
Q4 Earnings Outperformers: Napco (NASDAQ:NSSC) And The Rest Of The Specialized Technology Stocks
As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at specialized technology stocks, starting with Napco (NASDAQ:NSSC). Companies in this sector, especially if they invest wisely, could see demand tailwinds as the world moves towards more IoT (Internet of Things), automation, and analytics. Enterprises across most industries will balk at taking these journeys solo and will enlist companies with expertise and scale in these areas. However, headwinds could include rising competition from larger technology firms, as digitization lowers barriers to entry in the space. Additionally, companies in the space will likely face evolving regulatory scrutiny over data privacy, particularly for surveillance and security technologies. This could make companies have to continually pivot and invest. The 8 specialized technology stocks we track reported a mixed Q4. As a group, revenues were in line with analysts' consensus estimates while next quarter's revenue guidance was 0.7% below. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 11.4% since the latest earnings results. Protecting everything from schools to government facilities since 1969, Napco Security Technologies (NASDAQ:NSSC) manufactures electronic security devices, access control systems, and communication services for intrusion and fire alarm systems. Napco reported revenues of $42.93 million, down 9.7% year on year. This print fell short of analysts' expectations by 13.9%. Overall, it was a disappointing quarter for the company with a significant miss of analysts' EPS estimates. Richard Soloway, Chairman and CEO, commented, "As we complete the first half of Fiscal 2025, our performance has yielded mixed results." Napco delivered the weakest performance against analyst estimates of the whole group. The stock is down 38.1% since reporting and currently trades at $22.71. Is now the time to buy Napco? Access our full analysis of the earnings results here, it's free. Originally founded in 1968 as a defense contractor for the U.S. government, PAR Technology (NYSE:PAR) provides cloud-based software, payment processing, and hardware solutions that help restaurants manage everything from point-of-sale to customer loyalty programs. PAR Technology reported revenues of $105 million, up 50.2% year on year, outperforming analysts' expectations by 4.3%. The business had an incredible quarter with an impressive beat of analysts' ARR and EPS estimates. PAR Technology achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems content with the results as the stock is up 1.6% since reporting. It currently trades at $61.70. Is now the time to buy PAR Technology? Access our full analysis of the earnings results here, it's free. Born from a corporate transformation completed in 2023, Crane NXT (NYSE:CXT) provides specialized technology solutions for payment processing, banknote security, and authentication systems for financial institutions and businesses. Crane NXT reported revenues of $399.1 million, up 11.8% year on year, falling short of analysts' expectations by 2.7%. It was a slower quarter as it posted a miss of analysts' organic revenue estimates and EPS in line with analysts' estimates. As expected, the stock is down 12.8% since the results and currently trades at $51.10. Read our full analysis of Crane NXT's results here. Originally spun off from networking equipment maker Netgear in 2018, Arlo Technologies (NYSE:ARLO) provides cloud-based smart security devices and subscription services that help consumers and businesses monitor and protect their homes, properties, and loved ones. Arlo Technologies reported revenues of $121.6 million, down 10% year on year. This number met analysts' expectations. More broadly, it was a mixed quarter with EPS inline with analysts' estimates. Arlo Technologies had the slowest revenue growth among its peers. The stock is down 19.4% since reporting and currently trades at $9.62. Read our full, actionable report on Arlo Technologies here, it's free. Founded in 1981 when computer vision was in its infancy, Cognex (NASDAQ:CGNX) develops machine vision systems and software that help manufacturers and logistics companies automate quality inspection and tracking of products. Cognex reported revenues of $229.7 million, up 16.8% year on year. This print surpassed analysts' expectations by 4%. Overall, it was a strong quarter as it also put up an impressive beat of analysts' EPS estimates. The stock is down 23.6% since reporting and currently trades at $30.01. Read our full, actionable report on Cognex here, it's free. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here. Sign in to access your portfolio
Yahoo
23-03-2025
- Business
- Yahoo
The Trend Of High Returns At Napco Security Technologies (NASDAQ:NSSC) Has Us Very Interested
What trends should we look for it we want to identify stocks that can multiply in value over the long term? Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding base of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. With that in mind, the ROCE of Napco Security Technologies (NASDAQ:NSSC) looks great, so lets see what the trend can tell us. The end of cancer? These 15 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's. If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. Analysts use this formula to calculate it for Napco Security Technologies: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.29 = US$53m ÷ (US$203m - US$22m) (Based on the trailing twelve months to December 2024). Therefore, Napco Security Technologies has an ROCE of 29%. That's a fantastic return and not only that, it outpaces the average of 10% earned by companies in a similar industry. Check out our latest analysis for Napco Security Technologies In the above chart we have measured Napco Security Technologies' prior ROCE against its prior performance, but the future is arguably more important. If you're interested, you can view the analysts predictions in our free analyst report for Napco Security Technologies . Investors would be pleased with what's happening at Napco Security Technologies. Over the last five years, returns on capital employed have risen substantially to 29%. The company is effectively making more money per dollar of capital used, and it's worth noting that the amount of capital has increased too, by 110%. This can indicate that there's plenty of opportunities to invest capital internally and at ever higher rates, a combination that's common among multi-baggers. All in all, it's terrific to see that Napco Security Technologies is reaping the rewards from prior investments and is growing its capital base. And a remarkable 218% total return over the last five years tells us that investors are expecting more good things to come in the future. With that being said, we still think the promising fundamentals mean the company deserves some further due diligence. While Napco Security Technologies looks impressive, no company is worth an infinite price. The intrinsic value infographic for NSSC helps visualize whether it is currently trading for a fair price. If you'd like to see other companies earning high returns, check out our free list of companies earning high returns with solid balance sheets here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
