Shares of radio-frequency identification solutions provider Impinj (NASDAQ:PI) rose on Thursday despite no company-specific news. The company's third-quarter report on Monday may be a contributing factor in addition to a stock market rally on Thursday. The stock was up about 10.9% at 3:50 p.m. EDT.
Impinj managed to return to revenue growth in the third quarter after three consecutive quarters of steep sales declines. A channel inventory correction that played out over the past year knocked down sales for the company, but Impinj now believes that the issue is resolved.
The company reported third-quarter revenue of $34.4 million, about $0.9 million above analyst expectations, and non-GAAP earnings per share of negative $0.05, $0.09 higher than the average analyst estimate.
Impinj expects to keep the party going in the fourth quarter, calling for revenue between $31 million and $33 million. That's up from $26.9 million of revenue in the prior-year period. The company expects to lose money on every basis, but the top line is finally moving in the right direction.
Impinj's gains on Thursday mostly may be the result of a rallying stock market -- the Nasdaq index gained about 1.75% shortly before market close. The company will need to sustain its return to growth and move closer to profitability in order to keep its stock moving higher in the long run.