Please ensure Javascript is enabled for purposes of website accessibility

Why Impinj Stock Fell on Tuesday

By Daniel Sparks - Updated Mar 3, 2020 at 6:17PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Shares of the wireless connectivity company fell despite strong fourth-quarter results.

What happened

Shares of Impinj (PI 3.38%) took a hit on Tuesday, falling as much as 12.4%. The stock finished the trading day down a total of 10.7%.

Impinj's decline comes after the wireless connectivity company reported its fourth-quarter results. While financial results for the quarter were strong, investors may be concerned with Impinj's outlook for a headwind in its systems business in Q2.

A chalkboard sketch of a chart showing a stock price declining

Image source: Getty Images.

So what

Impinj reported fourth-quarter revenue of $40.8 million, up from $34.6 million in the year-ago period. Non-GAAP (adjusted) earnings per share were $0.03, up from a loss of $0.07 in the fourth quarter of 2018. Analysts, on average, were expecting revenue of $38.1 million and earnings to breakeven on a non-GAAP per-share basis. 

Looking ahead to 2020, Impinj warned that its North American system project contributed meaningfully to the fourth quarter of 2018 and will contribute to the first quarter of 2020 as well but will "transition from deployment to operations at the end of Q1, with the customer not purchasing additional gateways in Q2 2020." This will result in "a meaningful headwind for our systems business beginning in Q2 2020," said Impinj CFO Cary Baker in the tech company's earnings call. 

Now what

While Impinj expects a headwind to its systems business beginning in Q2, management is confident in the long-term outlook for the overall business and its systems business specifically.

"We enter 2020 with strong momentum and a solid foundation for our business," commented Impinj CEO Chris Diorio in the company's fourth-quarter earnings release. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Impinj, Inc. Stock Quote
Impinj, Inc.
$58.67 (3.38%) $1.92

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/30/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.