Latest news with #RichardSoloway
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.
Associated Press
22-04-2025
- Business
- Associated Press
ROSEN, A HIGHLY RECOGNIZED LAW FIRM, Encourages NAPCO Security Technologies, Inc. Investors to Inquire About Securities Class Action Investigation
New York, New York--(Newsfile Corp. - April 22, 2025) - WHY: Rosen Law Firm, a global investor rights law firm, continues to investigate potential securities claims on behalf of shareholders of NAPCO Security Technologies, Inc. (NASDAQ: NSSC) resulting from allegations that NAPCO may have issued materially misleading business information to the investing public. SO WHAT: If you purchased NAPCO securities you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement. The Rosen Law Firm is preparing a class action seeking recovery of investor losses. WHAT TO DO NEXT: To join the prospective class action, go to or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. WHAT IS THIS ABOUT: On February 3, 2025, published an article entitled 'NAPCO Security stock tumbles after Q2 sales decline.' The article stated that "[s]hares of NAPCO Security Technologies,, Inc. [. . .] plummeted 27% following the announcement of its fiscal 2025 second quarter results, which revealed a decrease in net sales and diluted earnings per share (EPS) compared to the same period last year.' The article further stated that 'Richard Soloway, Chairman and CEO, attributed the equipment revenue shortfall to lagging sales in intrusion and access alarm products and door locking devices. The company cited specific issues with two of its larger distributors; one reduced purchases to cut inventory levels, and another underwent a management restructuring that delayed transaction approvals. Soloway expressed disappointment in the overall equipment sales but remains optimistic about future improvements.' On this news, NAPCO's shares fell 26.6% on February 3, 2025. WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually litigate securities class actions. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm achieved the largest ever securities class action settlement against a Chinese Company at the time. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered hundreds of millions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers. Follow us for updates on LinkedIn: on Twitter: or on Facebook: Attorney Advertising. Prior results do not guarantee a similar outcome. ------------------------------- Contact Information: Laurence Rosen, Esq. Phillip Kim, Esq. The Rosen Law Firm, P.A. 275 Madison Avenue, 40th Floor New York, NY 10016 Tel: (212) 686-1060 Toll Free: (866) 767-3653 Fax: (212) 202-3827 [email protected] To view the source version of this press release, please visit
Associated Press
15-04-2025
- Business
- Associated Press
ROSEN, TOP-RANKED INVESTOR COUNSEL, Encourages NAPCO Security Technologies, Inc. Investors to Inquire About Securities Class Action Investigation
New York, New York--(Newsfile Corp. - April 15, 2025) - WHY: Rosen Law Firm, a global investor rights law firm, continues to investigate potential securities claims on behalf of shareholders of NAPCO Security Technologies, Inc. (NASDAQ: NSSC) resulting from allegations that NAPCO may have issued materially misleading business information to the investing public. SO WHAT: If you purchased NAPCO securities you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement. The Rosen Law Firm is preparing a class action seeking recovery of investor losses. WHAT TO DO NEXT: To join the prospective class action, go to or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. WHAT IS THIS ABOUT: On February 3, 2025, published an article entitled 'NAPCO Security stock tumbles after Q2 sales decline.' The article stated that "[s]hares of NAPCO Security Technologies,, Inc. [. . .] plummeted 27% following the announcement of its fiscal 2025 second quarter results, which revealed a decrease in net sales and diluted earnings per share (EPS) compared to the same period last year.' The article further stated that 'Richard Soloway, Chairman and CEO, attributed the equipment revenue shortfall to lagging sales in intrusion and access alarm products and door locking devices. The company cited specific issues with two of its larger distributors; one reduced purchases to cut inventory levels, and another underwent a management restructuring that delayed transaction approvals. Soloway expressed disappointment in the overall equipment sales but remains optimistic about future improvements.' On this news, NAPCO's shares fell 26.6% on February 3, 2025. WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually litigate securities class actions. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm achieved the largest ever securities class action settlement against a Chinese Company at the time. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered hundreds of millions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers. Follow us for updates on LinkedIn: on Twitter: or on Facebook: Attorney Advertising. Prior results do not guarantee a similar outcome. ------------------------------- Contact Information: Laurence Rosen, Esq. Phillip Kim, Esq. The Rosen Law Firm, P.A. 275 Madison Avenue, 40th Floor New York, NY 10016 Tel: (212) 686-1060 Toll Free: (866) 767-3653 Fax: (212) 202-3827 [email protected] To view the source version of this press release, please visit
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
Associated Press
19-03-2025
- Business
- Associated Press
ROSEN, A LEADING LAW FIRM, Encourages NAPCO Security Technologies, Inc. Investors to Inquire About Securities Class Action Investigation
New York, New York--(Newsfile Corp. - March 19, 2025) - WHY: Rosen Law Firm, a global investor rights law firm, continues to investigate potential securities claims on behalf of shareholders of NAPCO Security Technologies, Inc. (NASDAQ: NSSC) resulting from allegations that NAPCO may have issued materially misleading business information to the investing public. SO WHAT: If you purchased NAPCO securities you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement. The Rosen Law Firm is preparing a class action seeking recovery of investor losses. WHAT TO DO NEXT: To join the prospective class action, go to or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. WHAT IS THIS ABOUT: On February 3, 2025, published an article entitled 'NAPCO Security stock tumbles after Q2 sales decline.' The article stated that "[s]hares of NAPCO Security Technologies,, Inc. [. . .] plummeted 27% following the announcement of its fiscal 2025 second quarter results, which revealed a decrease in net sales and diluted earnings per share (EPS) compared to the same period last year.' The article further stated that 'Richard Soloway, Chairman and CEO, attributed the equipment revenue shortfall to lagging sales in intrusion and access alarm products and door locking devices. The company cited specific issues with two of its larger distributors; one reduced purchases to cut inventory levels, and another underwent a management restructuring that delayed transaction approvals. Soloway expressed disappointment in the overall equipment sales but remains optimistic about future improvements.' On this news, NAPCO shares fell 26.6% on February 3, 2025. WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually litigate securities class actions. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm achieved the largest ever securities class action settlement against a Chinese Company at the time. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered hundreds of millions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers. Attorney Advertising. Prior results do not guarantee a similar outcome. ------------------------------- Contact Information: Laurence Rosen, Esq. Phillip Kim, Esq. The Rosen Law Firm, P.A. 275 Madison Avenue, 40th Floor New York, NY 10016 Tel: (212) 686-1060 Toll Free: (866) 767-3653 Fax: (212) 202-3827
