What Happened:
Shares of RFID manufacturer Impinj (NASDAQ:PI) fell 28.5% in the morning session after 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.
What is the market telling us:
Impinj's shares are very volatile and over the last year have had 37 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.
Impinj is down 16.7% since the beginning of the year, and at $92.06 per share it is trading 34.9% 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 $7,740.
Is now the time to buy Impinj? Access our full analysis of the earnings results here, it's free.