Identiv Posts Smaller-Than-Feared Quarterly Loss As Sales Outperform; Shares Pop 9%

Shares of Identiv (INVE) surged 9.2% in Thursday’s extended trading session after the security technology company reported a smaller-than-expected loss in the first quarter. Moreover, sales surged 22% year-over-year, driven by a rise in RFID revenue (up 59%).

Identiv incurred a loss of $0.09 per share in 1Q, compared to the $0.10 loss per share estimated by analysts. A loss of $0.13 per share was reported in the same quarter last year. Revenue generated in the quarter was $22.2 million, which came in ahead of analysts’ expectations of $21.91 million.

Revenues in the Identity segment jumped 38% on a year-over-year basis to $13.7 million, while Premises segment revenue grew 3% to $8.5 million. Additionally, operating expenses, including research and development, sales and marketing, and general and administrative were $8.9 million, down 4.3%. (See Identiv stock analysis on TipRanks)

Identiv CEO Steven Humphreys said, “We made solid progress on each of our primary areas of focus – growing our RFID business and position as an industry leader, capitalizing on the strength of the federal market, and driving recurring revenues and customer retention to increase our predictability – all of which have put us on track to hit our growth projections with potential upsides in the near-term and second half of the year.”

“The financial results of the first quarter, and our progress subsequent to its end, have positioned us not only to grow revenues 20% – 25% in the first half of 2021 but to continue building efficiently throughout the year,” said Identiv’s CFO Sandra Wallach.

Following the 1Q results, Northland Securities analyst Michael Latimore maintained a Buy rating. Latimore increased the stock’s price target to $19 (33.8% upside potential) from $14 “given the strong visibility and potential for outsized wins and accelerants”.

The analyst commented, “The diverse and growing portfolio of RFID opportunities and a likely rebound in premises with reopenings, gives us confidence in growth. There are a few deals that alone could produce more RFID volume than that in all of 2020. Wins this year could produce 4Q revenue and lead to further acceleration in 2022.”

Identiv shares have skyrocketed almost 378% in the past year, while the stock still scores a Strong Buy consensus rating based on 3 unanimous Buys. That’s alongside an average analyst price target of $19, which implies 33.8% upside potential to current levels.

Furthermore, Identiv scores an 8 of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.

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