Impinj (PI) Stock Forecast & Price Target

Impinj Inc. reported a strong performance in Q4 with systems revenue contributing 19% of total revenues, amounting to $17.5 million, and showing a sequential increase of 23% as well as a modest year-over-year increase of 4%. The company also achieved a notable endpoint integrated circuits (IC) revenue of $74.1 million, representing a 37% year-over-year growth, despite a slight quarter-over-quarter decline of 9%. Furthermore, the gross margin for Q4 improved to 53.1%, surpassing management expectations and reflecting a positive trajectory in profitability driven by the strength in its core product offerings.

Impinj Inc. is facing a negative outlook due to lowered earnings per share (EPS) estimates for Q1 and 2025, dropping from $0.42 and $2.62 to $0.06 and $1.04, respectively. Additionally, the company's guidance indicates a decline in Systems revenue for Q1, which is expected to be more significant than the usual seasonal decline, primarily due to the completion of a self-checkout and loss prevention deployment with a large European retailer. Furthermore, the ongoing challenges related to excess endpoint integrated circuit inventory among channel partners and lower-than-expected revenue performance in Q4 have also contributed to the deterioration of the financial outlook.