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Market Overview

Impinj's Earnings: A Preview

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Impinj (NASDAQ:PI) announces its next round of earnings this Wednesday, February 10. Here is Benzinga's look at Impinj's Q4 earnings report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Analysts are predicting Impinj will report a loss of $0.22 per share on revenue of $34.90 million. In the same quarter last year, Impinj reported EPS of $0.03 on revenue of $40.82 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate when it reports Wednesday, EPS would have fallen 833.33%. Sales would be down 14.5% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate -0.32 -0.26 -0.06 0
EPS Actual -0.29 -0.25 0.13 0.03
Revenue Estimate 24.72 M 26.80 M 38.37 M 38.10 M
Revenue Actual 28.20 M 26.50 M 47.82 M 40.82 M

Stock Performance

For a full 12 months, the return has risen by 102.25%. Given that these returns are generally positive, long-term shareholders are probably relaxed going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. Impinj is scheduled to hold the call at 17:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings