NAPCO Security Technologies' stock surged 8.86% during Monday's intraday trading session following the release of its fiscal second quarter financial results.

The security equipment maker reported Q2 earnings per share of $0.38, beating analyst consensus estimates of $0.32 by 18.75%. Revenue reached $48.17 million, representing a 12.2% year-over-year increase and slightly exceeding the $47.77 million estimate. Notably, the company achieved a gross margin of 58.6%, showing improvement from 57.0% in the prior year quarter and indicating strong operational efficiency.

Investors responded positively to the earnings beat and margin expansion, with recurring service revenue growing 12.5% year-over-year to $23.85 million and now representing approximately 50% of total revenue. The company also announced a 7% increase in its quarterly dividend to $0.15 per share, further supporting investor confidence in its financial strength and growth prospects.