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Why Impinj Stock Rocketed Higher Today

By Timothy Green – Updated Apr 30, 2019 at 11:50AM

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Strong growth and solid guidance gave investors reasons to cheer.

What happened

Shares of Impinj (PI 3.94%) soared on Tuesday following the first-quarter report by the provider of radio-frequency identification solutions. Impinj beat analyst estimates across the board and produced better-than-expected guidance, sending the stock up 25.2% by 11:05 a.m. EDT.

So what

Impinj reported first-quarter revenue of $33.1 million, up 31.9% year over year and about $2 million above the average analyst estimate. The company pointed to strength in endpoint ICs, reader ICs, and gateways.

A rising stock chart.

Image source: Getty Images.

Non-GAAP earnings per share came in at a loss of $0.11, up from a loss of $0.35 in the prior-year period and $0.15 better than analysts were expecting. Impinj lost $0.33 per share on a GAAP basis, a bit less than half of what it lost in the first quarter of 2018. Higher revenue and slow operating expense growth, excluding a restructuring charge in the prior-year period, pushed the bottom line higher.

Impinj also announced its new M700 endpoint IC family during the first quarter, which CEO Chris Diorio called "our most exciting new-product introduction in a decade."

Now what

Impinj expects to produce between $34 million and $36 million of revenue in the second quarter, along with a non-GAAP net loss per share between $0.04 and $0.11. Analysts were expecting revenue guidance of $33 million and non-GAAP EPS guidance of a loss of $0.19.

Impinj suffered steep revenue declines in late 2017 and early 2018 due to an inventory correction at its partners. The company's growth rate in the first quarter benefited from a very easy comparison with the prior-year period. Impinj will fully lap that period of weakness after the second quarter, which means growth rates will likely slow down in the back half of the year.

Timothy Green has no position in any of the stocks mentioned. The Motley Fool recommends Impinj. The Motley Fool has a disclosure policy.

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