Shares of NAPCO Security Technologies (NSSC) plummeted 22.97% in pre-market trading on Monday after the company reported disappointing fiscal second-quarter 2025 results that missed analyst expectations.
For the quarter ended December 31, 2024, NAPCO Security reported earnings per share of $0.28, well below the consensus estimate of $0.33. Revenue came in at $42.9 million, missing expectations of $49.9 million and representing a 9.7% year-over-year decline.
The company cited reduced sales from two of its largest distributors as the primary reason for the weaker performance. One distributor made a corporate decision to cut back on all purchases to lower inventory levels, while another was going through a management restructuring that delayed order approvals and purchases.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.