Shares of radio frequency identification technologist Impinj (NASDAQ:PI) rose 74.5% in April 2019, according to data from S&P Global Market Intelligence. The boost was mainly due to a fantastic earnings report.
Impinj's stock wasn't exactly suffering in April, even before the huge earnings report at the end of the month. Share prices had gained nearly 30% last month on the eve of the first-quarter report, mainly due to signs of easing trade tensions between the U.S. and China. But then the report hit the newswires, showing a $0.11 loss per share where analysts had been expecting a far steeper $0.26 figure, and revenues 6% above the consensus Street view. Share prices surged more than 25% higher that day alone.
Market watchers are expecting an explosion of RFID growth, boosting the number of endpoint shipments by 15% to 20% per year over the next half-decade. Impinj is the hands-down market leader for both endpoints and RFID readers, giving the company a huge leg up on this massive growth opportunity. Share prices crashed hard in 2017 and 2018 because several of the largest buyers of RFID products had overestimated the scale of their implementations and ended up with warehouses full of unused endpoint inventories. That hump is in the rearview mirror now, which should be good tidings for Impinj and its investors over the next several years.