NAPCO Reports Preliminary Q4 Net Sales Of ~$44.7M And Net Income Between $10M-$11M, Restatement Of Prior Three Quarters, Should No Longer Be Relied Upon
Portfolio Pulse from Happy Mohamed
NAPCO Security Technologies (NSSC) has reported preliminary Q4 net sales of approximately $44.7M and net income between $10M-$11M. The company also announced a restatement of its financial results for the prior three quarters due to errors in the calculation of cost of goods sold (COGS) and inventory. The restatements are expected to reduce net income for the first three quarters of fiscal 2023. The company's balance sheet remains strong with approximately $67M of cash and no debt.
August 18, 2023 | 8:09 pm
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NAPCO Security Technologies' Q4 net sales and net income are expected to be strong. However, the company's restatement of prior three quarters due to errors in COGS and inventory calculations could negatively impact investor confidence.
The company's strong Q4 results could have a positive impact on the stock. However, the restatement of prior three quarters due to errors in COGS and inventory calculations could negatively impact investor confidence in the company's financial reporting, potentially leading to a decrease in the stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100