Internet-of-Things chip maker Impinj late Wednesday topped Wall Street's targets for the first quarter and crushed views with its outlook for the second quarter. The news sent PI stock soaring in extended trading. Impinj was one of several semiconductor stocks moving on earnings news.
Seattle-based Impinj earned an adjusted 21 cents a share on sales of $76.8 million in the March quarter. Analysts polled by FactSet had expected earnings of 10 cents a share on sales of $73.6 million. However, on a year-over-year basis, Impinj earnings declined 30% and sales dropped 11%.
For the current quarter, Impinj predicted adjusted earnings of 75 cents a share on sales of $97.5 million. That's based on the midpoint of its guidance. Analysts were modeling earnings of 19 cents a share on sales of $79 million in the second quarter. In the year-earlier period, it earned 33 cents a share on sales of $86 million.
Impinj makes tiny tracking chips that can connect items to the internet cloud for customers in retail, transportation, logistics and other industries. Its wireless chips track such things as retail store items, luggage, automobile parts and shipments.
PI Stock Has Formed A Flat Base
"2024 started strong, with revenue and profitability exceeding both our fourth-quarter results and first-quarter guidance," Chief Executive Chris Diorio said in a news release. "As we continue driving our bold vision to connect every item in our everyday world, I remain confident in our market position and energized by the opportunities ahead."
In after-hours trading on the stock market today, PI stock rose more than 11% to 134.50. During the regular session Wednesday, PI stock fell 2.2% to close at 120.91.
PI stock has formed a flat base with a buy point of 132, according to IBD MarketSurge charts.
MaxLinear Calls A Sales Bottom
Other semiconductor stocks reacting to earnings reports Wednesday included MaxLinear, Silicon Labs, Texas Instruments and United Microelectronics.
Like PI stock, MaxLinear reported its first-quarter results after the market close Wednesday. But Carlsbad, Calif.-based MaxLinear delivered a mixed Q1 report. MaxLinear stock dropped 6.6% to 19.54 in late trades.
MaxLinear lost an adjusted 21 cents a share on sales of $95.3 million in the March quarter. Analysts had expected a loss of 22 cents a share on sales of $94.2 million. In the year-earlier period, it earned 74 cents a share on sales of $248.4 million.
For the second quarter, MaxLinear forecast revenue of $90 million to $110 million. However, the midpoint of $100 million was below Wall Street's target of $105.3 million. In the year-ago period, its sales were $183.9 million.
"We believe our revenue has bottomed and is now poised for sequential growth throughout 2024," Chief Executive Kishore Seendripu said in a news release.
The company is well positioned for its next stage of growth as a data infrastructure company, Seendripu said. MaxLinear's product offerings cover optical data center and wireless network infrastructure, enterprise ethernet and storage accelerators, Wi-Fi connectivity, and fiber broadband access gateways.
Semiconductor Stocks On The Move
Elsewhere among semiconductor stocks, Texas Instruments stock rose 5.6% to 174.81 on Wednesday. Late Tuesday, the chipmaker delivered better-than-expected first-quarter results.
Silicon Labs and UMC both reported their first-quarter results before the market open Wednesday.
Silicon Labs posted its second consecutive quarterly loss and fourth straight quarter of declining sales on a year-over-year basis. Its first-quarter results were in line with views, but the chipmaker disappointed with its second-quarter guidance and timeline for a market recovery. Silicon Labs stock fell 8.9% to 114.26 on Wednesday.
Chip foundry UMC delivered in-line Q1 results and Q2 guidance but gave a cautious outlook for the rest of the year. The company is seeing a slower recovery in end markets like automotive, industrial and consumer electronics. UMC stock rose 1.3% to 7.70 on Wednesday.
PI stock ranks No. 13 out of 39 stocks in IBD's fabless semiconductor industry group, according to IBD Stock Checkup. Meanwhile, MaxLinear ranks No. 17 in the group and Silicon Labs ranks No. 18.
Texas Instruments ranks No. 11 out of 33 stocks in IBD's semiconductor manufacturing group. UMC also is in the chipmaker group but is unranked.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
