What happened
Continue Reading Below
Shares of Impinj (NASDAQ: PI) slumped on Friday after the provider of radio-frequency identification solutions fell well short of analyst expectations when it reported its fourth-quarter results. The stock tanked earlier this month when Impinj provided disappointing preliminary results, which actually turned out to be overly optimistic. Impinj stock was down about 19.5% at 11:55 a.m. EST.
So what
Impinj reported fourth-quarter revenue of $26.9 million, down 20% year over year and about $2.6 million below the average analyst estimate. This was also below the $29 million-$30 million range the company provided when it reported preliminary results. Impinj blamed a partner’s request for a one-time product exchange, which will push some revenue into the first quarter.
Non-GAAP earnings per share came in at a loss of $0.28, down from a profit of $0.11 in the prior-year period and $0.09 shy of analyst expectations. Lower revenue and a jump in operating expenses pushed down the bottom line.
Impinj CEO Chris Diorio tried to find a silver lining: “Our fourth quarter revenue included strong fixed-reader unit-volume growth of 42% year-over-year… We remain confident in our market opportunity, position, and in our vision of identifying, locating and authenticating every item in our everyday world, and connecting every one of those items to the cloud.”
Continue Reading Below
ADVERTISEMENT
Now what
Impinj expects weak endpoint IC volumes during the first quarter due to shortened lead times and ongoing reductions in partner inventory. The company expects revenue between $23.25 million and $25.25 million, along with a non-GAAP per-share net loss between $0.35 and $0.42.
Shares of Impinj are now down about 82% from their 52-week high. With revenue and profits moving in the wrong direction, investors are no longer willing to award the stock a premium valuation.
10 stocks we like better than Impinj
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now… and Impinj wasn’t one of them! That’s right — they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of February 5, 2018
Timothy Green has no position in any of the stocks mentioned. The Motley Fool recommends Impinj. The Motley Fool has a disclosure policy.
