Why Impinj Stock Dropped Today

Impinj (NASDAQ: PI) stock tumbled 7% through 11:55 a.m. ET Wednesday despite hinting last night that it might beat analyst forecasts for Q4 sales.

Analysts expect the Internet of Things stock to report sales of less than $92 million for the quarter, but Impinj reminded that its own guidance was for $90 million to $93 million -- and it expects to land toward the high end of that range.

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Impinj Q4 sales (and earnings?)

So the news was good -- but also laconic, measuring barely 100 words (including the byline).

In the process of informing that its CEO, Chris Diorio, and CFO, Cary Baker, will participate in the 28^th Annual Needham Growth Conference today, Impinj apparently decided it should make public the revenue figures it would lay out at that conference. The company didn't have much to say on the subject of earnings, however.

On that score, Impinj simply noted its "adjusted EBITDA" will be "above the midpoint of its prior guidance of $15.4 to $16.9 million." (EBITDA is earnings before interest, taxes, depreciation, and amortization.) The company did not give a number for its earnings as calculated according to generally accepted accounting principles (GAAP).

Is Impinj stock a buy?

There may be a reason for that. Analysts who follow the stock expect Impinj to report a GAAP loss for 2025 -- $0.35 per share -- alongside a non-GAAP profit. They forecast a return to positive earnings of $0.62 per share this year, but even if that happens, it will be less than half what Impink earned in 2024.

It will probably also value Impinj at more than 300 times forward earnings -- which is almost certainly too much to pay. Investors are right to be selling Impinj.

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