Why Impinj Stock Was Climbing Today

Shares of Impinj (NASDAQ: PI) were climbing today after the RFID tag specialist posted better-than-expected results in its second-quarter earnings report.

As a result, the stock was up 3.6% as of 3:09 p.m. ET.

Image source: Getty Images.

Impinj impresses again

Impinj, whose stock has been soaring since a slowdown during the pandemic, said revenue jumped 19% to $102.5 million, easily beating estimates of $97.5 million.

Gross margin also soared in the quarter, jumping from 51% to 56.1%, showing the company is gaining leverage as it scales up. Operating expenses also fell in the quarter as general and administrative expenses fell substantially, and sales and marketing expenses were down slightly.

On the bottom line, the company reported adjusted earnings per share of $0.83, up from $0.33 in the quarter a year ago and better than estimates at $0.74. On a generally accepted accounting principles (GAAP) basis, the company also flipped a loss in the quarter a year ago to a per-share of $0.34.

CEO Chris Diorio said the company set several records in the quarter, and it easily beat its own guidance.

What's next for Impinj

As a leader in the RAIN RFID category, Impinj is capitalizing on demand growth in a number of channels, such as retail, healthcare, and manufacturing. The company offered solid guidance for the third quarter, calling for revenue of $91 million-$94 million, ahead of the consensus of $90.3 million and reflecting 42% growth.

It also forecasted adjusted earnings per share of $0.46-$0.50, which was better than the consensus at $0.40.

Impinj stock is expensive, but the company has a record of topping estimates. If it can continue to do so, shares should keep moving higher.

Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool recommends Impinj. The Motley Fool has a disclosure policy .