Shares of radio-frequency identification solutions provider Impinj (NASDAQ:PI) jumped on Monday. There was no news driving the stock higher. Shares of Impinj have tumbled nearly 60% from their 52-week high, so Monday's gain may just be a bounce from depressed levels. The stock was up about 7.5% at noon EST, after having been up 18% earlier in the day.
Impinj's troubles began in mid-2017. The company's second-quarter report in August included slower-than-usual revenue growth and a guidance cut. Revenue grew by 31% year over year, and Impinj lowered its full-year estimate for endpoint IC shipments to between 7 billion and 7.2 billion units. The company blamed delayed rollout expansions at several large customers.
The third-quarter report was worse. Revenue grew by just 5% year over year, and the company said it expected a slight decrease in endpoint IC volumes in the second half of the year. Its fourth-quarter guidance called for revenue between $28.25 billion and $29.75 billion, down nearly 15% year over year at the midpoint and not even close to the average analyst estimate.
These rapidly deteriorating results led to a steep drop in the stock.
With shares of Impinj having plunged over the past six months, Monday's rally looks like a bounce with nothing material behind it. The company is going to need to improve its results and return to growth before the stock can recover in a sustainable way.
Impinj is scheduled to report its fourth-quarter results on Feb. 15. The numbers won't be pretty, but solid guidance could drive a recovery in the stock price.