Impinj, the internet-of-things chip company, has announced optimistic financial forecasts for the first quarter, resulting in a surge in its shares’ value.
Q4 Results and Forecast
In the fourth quarter, Impinj reported a revenue of $70.7 million, marking an 8% decline compared to the previous year. However, this figure was consistent with the company’s earlier statement that revenue would surpass $70 million. Initially, investors were informed to expect revenue between $65.5 million and $68.5 million.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at $3 million, in line with the recently revised forecast of over $2.5 million. The original projection ranged from a loss of $900,000 to a profit of $700,000.
On an adjusted basis, Impinj earned 9 cents per share. Adopting generally accepted accounting principles, the company experienced a loss of 56 cents per share.
Promising Q1 Guidance
For the first quarter of the year, Impinj anticipates revenues ranging from $72 million to $75 million. The company also projects adjusted EBITDA in the range of $3 million to $4.5 million and adjusted profits between 8 and 13 cents per share. These estimates surpass the market consensus, which predicted revenue of $70.8 million and profits of two cents per share.
Impinj Shows Signs of Recovery in Retail Market
Impinj, a leading technology company that specializes in tracking goods for retailers, has reported a positive upswing in its performance for the end of 2023. Although CEO Chris Diorio acknowledges that it is premature to declare the retail downturn over, he expressed optimism as he observed encouraging signs during the third-quarter earnings call.
Amidst this positive outlook, Needham analyst James Ricchiuti has reiterated a Buy rating on Impinj shares and increased the target price from $115 to $120. Ricchiuti is confident that the company has the potential to achieve a growth rate of over 20% by 2025.
Ricchiuti further explained that Impinj shares have experienced a significant rally recently, mainly due to the indication of recovery in the retail apparel market, which is Impinj’s core sector. He also predicts that as retailers complete their inventory destocking in early 2024, Impinj will witness a return to more normalized levels of demand.
Additionally, portfolio manager Dan Niles from Satori Fund shared his support for Impinj in his small-cap ideas for 2024, highlighting the company’s resilience despite the challenges it faced during the pandemic. Impinj had to deal with supply chain issues and a decline in retail sales, particularly in the apparel sector, leading to a surge in inventories of its RFID tags.
Overall, Impinj is showing promising signs of recovery in the retail market. With its innovative technology and optimistic outlook, the company is poised for future growth and success.
Impinj Continues to Thrive in the Retail Sector
Impinj, a leading provider of Internet of Things (IoT) solutions, has witnessed substantial success due to a combination of decreasing component costs and an increased presence across various retail categories. The company’s stock has seen a remarkable surge of over 40% during this period.
As of Friday, Impinj’s stock soared by 10%, reaching an impressive value of $117.
With its continuous growth and promising prospects, Impinj remains a formidable player in the retail industry.