Electronic security systems manufacturer Napco Security Technologies (NASDAQ: NSSC) will be reporting earnings tomorrow morning. Here’s what to look for.

Napco met analysts’ revenue expectations last quarter, reporting revenues of $50.33 million, up 12.7% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ earnings estimates but a miss of analysts’ EBITDA estimates.

Is Napco a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Napco’s revenue to grow 11.7% year on year to $46.56 million, improving from the 5.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.33 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Napco has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 4% on average.

Looking at Napco’s peers in the electrical systems segment, some have already reported their Q3 results, giving us a hint as to what we can expect. OSI Systems delivered year-on-year revenue growth of 23.2%, beating analysts’ expectations by 8%, and Vertiv reported revenues up 19%, topping estimates by 4.8%. OSI Systems traded down 5.5% following the results while Vertiv was also down 2.2%.

Read our full analysis of OSI Systems’s results here and Vertiv’s results here.

Investors in the electrical systems segment have had steady hands going into earnings, with share prices flat over the last month. Napco’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $54.83 (compared to the current share price of $38.59).

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