Shares of Impinj, an Internet of Things firm, are on the rise Wednesday after the chip company said fourth-quarter financial results will be well ahead of its previous forecast.
Impinj said it now sees revenue of more than $70 million for the quarter, above its previous target range of $65.5 million to $68.5 million. The company now sees adjusted Ebita, or earnings before interest, taxes, depreciation and amortization, of more than $2.5 million, compared with a previous forecast range of a loss of $900,000 to a profit of $700,000.
Consensus estimates as tracked by FactSet called for sales of $67.5 million, a non-GAAP profit of a penny a share, and adjusted Ebitda of $800,000.
The company made the disclosure ahead of a presentation Wednesday morning by the company at a Needham securities conference.
In a Barron’s Tech Trader column published in early December on small-cap ideas for 2024, Satori Fund portfolio manager Dan Niles called out Impinj as one of his favorites. At the time, Niles noted Impinj took a double hit during the pandemic from supply-chain issues and the slowdown in retail sales, particularly in apparel, which caused inventories of its RFID tags used to track goods to balloon. He added that Impinj is benefiting from declining component costs while expanding its reach into a broader set of retail categories.
On Wednesday, Impinj shares rallied 8.6%, to $88.82.
Write to Eric J. Savitz at [email protected]
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