Napco (NSSC) Reports Q4: Everything You Need To Know Ahead Of Earnings

Security systems manufacturer Napco (NASDAQ:NSSC) will be reporting results this Monday before the bell. Here’s what to look for.

Napco beat analysts’ revenue expectations by 4.8% last quarter, reporting revenues of $49.17 million, up 11.7% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.

Is Napco a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Napco’s revenue to grow 11.4% year on year to $47.82 million, a reversal from the 9.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.31 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Napco has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Napco’s peers in the tech hardware & electronics segment, some have already reported their Q4 results, giving us a hint as to what we can expect. OSI Systems delivered year-on-year revenue growth of 10.5%, beating analysts’ expectations by 2.4%, and Avnet reported revenues up 11.6%, topping estimates by 4.5%. OSI Systems traded down 7.3% following the results while Avnet was up 19.1%.

Read our full analysis of OSI Systems’s results here and Avnet’s results here.

Investors in the tech hardware & electronics segment have had steady hands going into earnings, with share prices up 2% on average over the last month. Napco is down 10.6% during the same time and is heading into earnings with an average analyst price target of $48.83 (compared to the current share price of $36.97).

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