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.