NAPCO Security Technologies (NASDAQ: NSSC) stock plummeted over 13% in pre-market trading on Monday after the company reported disappointing fiscal second-quarter 2025 results that missed analyst estimates.
The electronic security systems manufacturer reported earnings per share of $0.28, falling short of the consensus estimate of $0.33. Revenue for the quarter came in at $42.9 million, missing expectations of $49.9 million and representing a 9.7% year-over-year decline.
The company attributed the weaker performance to reduced sales of intrusion and access alarm products, as well as door locking devices, primarily due to lower purchases from two of its larger distributors. One distributor made a corporate decision to cut back on all purchases to reduce inventory levels, while another was going through a management restructuring, which delayed orders.