NAPCO shares jump on fiscal 2Q revenue and profit beats thanks to security system sales

Shares of NAPCO Security Technologies Inc (NASDAQ:NSSC) soared Monday after the security products and software company crushed Wall Street’s estimates for revenue and profit in the fiscal second quarter.

In the three months ended on December 31, the Amityville, New York-based company reported net income of $2.9 million, or $0.15 per share, compared to $1.2 million, or $0.07 per share in the year-ago quarter. Its revenue, meanwhile, came in at $24.8 million, up from $21.1 million in the year-ago quarter.

The results zipped past the projections of analysts who had forecast that NAPCO would earn $0.09 on revenue of $23.24 million.

READ: NAPCO Security Technologies beats on revenue, but misses Wall Street’s fiscal 4Q profit estimate on higher expenses

Investors welcomed the results, sending NAPCO shares up 9.5% to $16.90 in Monday’s morning trading session.

The company makes school safety lockdown programs as well as Internet of Things-connected home, video and fire safety systems.

Using its proprietary School Access-control Vulnerability index and audit system, the company trains school personnel on how to measure a school’s security level.

In a statement, Richard Soloway, NAPCO’s chairman and president, said sales of the company’s education-focused security systems, which also include advanced wireless locking and intruder locks, are seeing exceptional growth.

“We are encouraged by our growth in sales and profits for Fiscal 2019 to date and look forward to a strong second-half of our year and beyond,” Soloway said in a statement.

At the close of December, NAPCO was sitting on cash and cash equivalents of $7.9 million, up from $5.3 million as of the close of June.

Contact Ellen Kelleher at [email protected]

Story by ProactiveInvestors