Overview
NAPCO fiscal Q4 revenue of $50.7 mln beats analyst expectations
Recurring service revenue grows 10% in Q4, maintaining 91% gross margin
Equipment sales decrease 5% YoY, but rise 27% sequentially from Q3
Outlook
NAPCO expects equipment sales growth in fiscal 2026
Company anticipates recurring service revenue run rate of $94 mln
Company sees strong net income and cash flow in fiscal 2026
Result Drivers
RECURRING SERVICE REVENUE - RSR increased 10% in Q4, with a 91% gross margin, representing 44% of total revenue
EQUIPMENT SALES DECLINE - Equipment sales fell 5% YoY in Q4, attributed to distributor destocking and project timing issues
GROSS MARGIN DROP - Q4 gross profit margin decreased to 52.8% from 55.3% in the prior year qtr
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Beat | $50.70 mln | $44.40 mln (6 Analysts) |
Q4 EPS |
| $0.33 |
|
Q4 Gross Margin |
| 52.8% |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the communications & networking peer group is "buy"
Wall Street's median 12-month price target for NAPCO Security Technologies Inc is $29.00, about 9.3% below its August 22 closing price of $31.70
The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 19 three months ago
Press Release: ID:nPnb5HCWKa