Impinj Stock Plummets As Tracking-Chip Maker Cuts Outlook

Impinj (PI) shares cratered Thursday after the tracking-chip maker delivered mixed results for the first quarter and offered an outlook that was well below views. Impinj stock plummeted nearly 40% on the news.

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The Seattle-based company late Wednesday said it earned an adjusted 30 cents a share on sales of $85.9 million in the March quarter. Analysts polled by FactSet had expected Impinj earnings of 32 cents a share on sales of $83.6 million. In the year-earlier period, Impinj earned 9 cents on sales of $53.1 million.

For the current quarter, Impinj predicted adjusted earnings of 31 cents a share on sales of $85.5 million. That’s based on the midpoint of its outlook. However, Wall Street was projecting earnings of 40 cents a share on sales of $88.3 million in the second quarter.

“Our first-quarter results were solid, with record revenue and a very strong multi-quarter endpoint IC (integrated circuit) backlog,” Chief Executive Chris Diorio said in a news release. “With confidence in our platform solutions and the secular market growth, we are well positioned to capitalize on our opportunity.”

Impinj Stock Tanks After Earnings Report

On the stock market today, Impinj stock cratered by 39.1% to close at 82.47. During the regular session Wednesday, Impinj stock dipped 0.5% to close at 135.32.

Impinj makes tiny tracking chips that can connect items to the internet cloud for customers in retail, transportation, logistics and other industries. Its wireless chips track such things as retail store items, luggage, automobile parts and shipments.

Silicon Labs Disappoints With Outlook

Early Wednesday, industry peer Silicon Laboratories (SLAB) also posted mixed results for the first quarter and guided lower for the second quarter.

The Austin, Texas-based chipmaker earned an adjusted $1.12 a share on sales of $246.8 million in the March quarter. Analysts had predicted earnings of $1.11 a share on sales of $247.5 million. On a year-over-year basis, Silicon Labs earnings rose 7% as sales increased 6%.

For the current quarter, Silicon Labs predicted adjusted earnings of $1.03 a share on sales of $243 million, based on the midpoint of its outlook. Wall Street had projected earnings per share of $1.08 on sales of $260.3 million.

Silicon Labs stock tumbled 9.1% to close at 141.92 on Wednesday.

Impinj Stock Is On Tech Leaders List

Silicon Labs and Impinj are both on the IBD Tech Leaders list. On Wednesday, Impinj stock had a best-possible IBD Composite Rating of 99 while Silicon Labs had a score of 95.

IBD’s Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths. The best growth stocks have a Composite Rating of 90 or better on the 1-to-99 scale.

Impinj stock had been consolidating for the past eight weeks with a buy point of 145, according to IBD MarketSmith charts.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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