What factors drive NSSC's EPS surprises?

Napco Security Technologies (NSSC) has experienced an EPS surprise of -0.05, which is a decrease from the expected EPS of $0.28. The factors contributing to this EPS surprise can be analyzed as follows:

1. **Revenue Decline**: The company's total revenue for the MRQ was $42.93 million, which represents a decrease of 9.7% year-over-year. This decline in revenue fell short of analysts' expectations, resulting in a significant miss of analysts' EPS estimates.
2. **Net Income Decrease**: The net income for the MRQ was $10.47 million, indicating a 19% decrease from the same period the previous year. This decline in net income further contributed to the negative EPS surprise.
3. **Distribution Network Issues**: Problems with the company's distribution network have been a recurring issue, leading to a 25% drop in equipment sales compared to the same quarter the previous year. These issues have impacted the company's revenue and profitability, affecting the EPS.
4. **Sales Shortfall**: The company attributed the revenue shortfall to lagging sales in intrusion and access alarm products and door locking devices. This indicates that the company's core product lines are facing challenges, which has adversely affected its financial performance.

In conclusion, the EPS surprise for Napco Security Technologies, Inc. is primarily driven by a combination of revenue decline, net income decrease, distribution network issues, and sales shortfall. These factors have collectively contributed to the company's disappointing financial performance, resulting in an EPS surprise that falls short of market expectations.