Need To Know: Analysts Just Made A Substantial Cut To Their Impinj, Inc. (NASDAQ:PI) Estimates

The latest analyst coverage could presage a bad day for Impinj, Inc. (NASDAQ:PI), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) estimates were cut sharply as the analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the latest downgrade, the current consensus, from the nine analysts covering Impinj, is for revenues of US$346m in 2025, which would reflect a measurable 5.4% reduction in Impinj's sales over the past 12 months. Following this this downgrade, earnings are now expected to tip over into loss-making territory, with the analysts forecasting losses of US$0.89 per share in 2025. Before this latest update, the analysts had been forecasting revenues of US$443m and earnings per share (EPS) of US$0.73 in 2025. There looks to have been a major change in sentiment regarding Impinj's prospects, with a sizeable cut to revenues and the analysts now forecasting a loss instead of a profit.

Check out our latest analysis for Impinj

The consensus price target fell 39% to US$140, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 5.4% by the end of 2025. This indicates a significant reduction from annual growth of 20% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 17% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Impinj is expected to lag the wider industry.

The Bottom Line

The biggest low-light for us was that the forecasts for Impinj dropped from profits to a loss this year. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Impinj's revenues are expected to grow slower than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Impinj.

Worse, Impinj is labouring under a substantial debt burden, which - if today's forecasts prove accurate - the forecast downgrade could potentially exacerbate. You can learn more about our debt analysis for free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.