What Happened:
Shares of RFID manufacturer Impinj (NASDAQ:PI) jumped 8.9% in the morning session after the company reported second-quarter earnings results. Impinj beat analysts' revenue, adjusted EBITDA, and EPS expectations. Notably, the topline benefitted from strong IC (integrated circuit) sales, which grew 45% sequentially, and 38% year on year. Additionally, its revenue guidance for the next quarter was higher than expected. Overall, this was a strong quarter that should satisfy shareholders.
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What is the market telling us:
Impinj's shares are very volatile and over the last year have had 25 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 9 months ago, when the stock gained 18.7% on the news that 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.
Impinj is up 85.2% since the beginning of the year, but at $159.27 per share it is still trading 12.2% below its 52-week high of $181.50 from July 2024. Investors who bought $1,000 worth of Impinj's shares 5 years ago would now be looking at an investment worth $4,399.
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