What to expect from Impinj’s (PI) Q3 earnings

RFID manufacturer Impinj (NASDAQ:PI) will be reporting earnings this Wednesday after market close. Here’s what investors should know.

Impinj beat analysts’ revenue expectations last quarter, reporting revenues of $108.4 million, up 10.7% year on year. It was a stunning quarter for the company, with a significant improvement in its inventory levels and a beat of analysts’ EPS estimates.

Is Impinj a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Impinj’s revenue to grow 11.7% year on year, improving from its flat revenue in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Impinj rarely misses Wall Street’s revenue estimates.

Looking at Impinj’s peers in the semiconductors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Texas Instruments delivered year-on-year revenue growth of 27.7%, beating analysts’ expectations by 2.6%, and Penguin Solutions reported revenues up 67.7%, topping estimates by 8.8%. Texas Instruments traded down 1.8% following the results while Penguin Solutions was up 13.1%.

Read our full analysis of Texas Instruments’s results here and Penguin Solutions’s results here.

In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the semiconductors stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 11.2% on average over the last month. Impinj is down 2.5% during the same time and is heading into earnings with an average analyst price target of $183.56 (compared to the current share price of $172.50).

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