From Alphastreet - Earnings Decoded. Market Intelligence Delivered · AlphaStreet Newsdesk · · 1m
Napco Security Technologies Q1 2027 Earnings Miss
Napco Security Technologies missed Q1 2027 earnings and revenue targets despite management's claims of double-digit growth.
In brief
Napco Security Technologies missed Q1 2027 earnings and revenue targets despite management's claims of double-digit growth. Napco Security Technologies reported Q1 2027 EPS of $0.34, missing $0.38 estimates by 10.5% and revenue of $50.0M versus $52.1M estimates. Originally reported by Alphastreet - Earnings Decoded…
Q1 2027 Earnings Report
Napco Security Technologies reported Q1 2027 EPS of $0.34, missing $0.38 estimates by 10.5%.
Revenue Misses Expectations
Napco Security Technologies reported revenue of $50.0M, missing $52.1M estimates by 4.0%.
Stock Reaction
The stock declined 1.6% to $39.35 after the earnings report.
Net Margin Improvement
Net margin expanded to 26.0% from 24.8% a year ago, a 1.2 percentage point improvement.
Segment Divergence
Recurring service revenue grew 11.5% to $26.1M, while equipment revenue declined 7.3% to $23.9M.
Cash Flow Concerns
Operating cash flow of $2.8M represents a conversion rate far below net income of $13.0M.
What to Watch
Equipment revenue trend will determine if the business model transition succeeds or stalls.
The takeaway
Napco Security Technologies reported Q1 2027 EPS of $0.34, missing $0.38 estimates by 10.5% and revenue of $50.0M versus $52.1M estimates.
