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Here's Why Impinj Stock Is Soaring Today

By Keith Noonan – Oct 28, 2021 at 12:58PM

Key Points

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The RFID specialist's stock is now up roughly 67% year to date.

What happened

Impinj (PI 3.94%) stock is making big gains following the company's third-quarter earnings release. The radio-frequency identification (RFID) specialist's share price was up roughly 25% on Thursday's trading as of 1:45 p.m. EDT. 

Impinj issued its Q3 results after the market closed on Oct. 27, posting sales and earnings results for the period that beat the average analyst targets. The company reported an adjusted loss of $0.04 per share on revenue of $45.2 million, while the average analyst estimate had called for a loss of $0.10 per share on sales of $44.1 million. 

Impinj reader chips.

Image source: Impinj.

So what

Impinj's sales jumped roughly 60% year over year in the third quarter, evidencing strong rebound momentum following last year's heavily pandemic-impacted quarter. The retail sector remains the largest market for the company's RFID tags and readers, and resurgent sales in the category helped the tech specialist post strong revenue growth and a smaller-than-expected loss in Q3. 

Now what

For the fourth quarter, management is targeting sales between $46 million and $48 million and expects adjusted earnings to come in between a loss of $0.04 per share and a profit of $0.02 per share. Prior to the earnings release, the average analyst estimate had called for Q4 sales of roughly $42.3 million and a per-share loss of $0.14, and the company's revenue and earnings guidance came in significantly above expectations.

Impinj also announced that it had secured wafer supply commitments with its foundry partner through the first half of 2022. With limited fabrication availability leading to ongoing supply constraints in the broader semiconductor industry, Impinj has been facing wafer shortages, and it's encouraging that the company has secured solid supply levels into the first half of next year. 

Keith Noonan owns shares of Impinj. The Motley Fool recommends Impinj. The Motley Fool has a disclosure policy.

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