Impinj (PI) Shares Skyrocket, What You Need To Know

Max Juang /
2023/10/26 10:49 am EDT

What Happened:

Shares of RFID manufacturer Impinj (NASDAQ:PI) jumped 18.7% in the morning session after the company reported an impressive "beat and raise" quarter. Third quarter revenue exceeded Wall Street's estimates by a small magnitude, while EPS blew past analysts' expectations. Next quarter's revenue guidance was raised and came in higher than Wall Street's estimates. In fact, the full year outlook for all major line items was raised and came in above Consensus. In the release, the company said that it is seeing "early signs of retail demand improvement, strong ongoing endpoint IC unit-volume growth despite the downturn and remain optimistic for the future." On the other hand, its gross and operating margin shrunk. Overall, it was a strong quarter for the company.

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What is the market telling us:

Impinj's shares are very volatile and over the last year have had 31 moves greater than 5%. But moves this big are very rare even for Impinj and that is indicating to us that this news had a significant impact on the market's perception of the business. 

The biggest move we wrote about over the last year was 6 months ago, when the stock dropped 28.5% on the news that the company reported first-quarter revenue that narrowly beat analysts' forecasts, but its earnings per share came in below expectations. In addition, sales and earnings per share guidance for the next quarter fell short of the consensus estimates. Stocks generally react negatively to weak earnings performance and guidance, so this quarter's earnings should result in downward revisions in financial projections for the company.

Impinj is down 42.6% since the beginning of the year, and at $63.53 per share it is trading 55.1% below its 52-week high of $141.40 from April 2023. Investors who bought $1,000 worth of Impinj's shares 5 years ago would now be looking at an investment worth $3,520.

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