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Canaan (CAN) Reports Q1 Loss, Lags Revenue Estimates
CANCanaan(CAN) ZACKS·2025-05-20 12:05

Company Performance - Canaan reported a quarterly loss of 0.27pershare,whichwasworsethantheZacksConsensusEstimateofalossof0.27 per share, which was worse than the Zacks Consensus Estimate of a loss of 0.15, and compared to a loss of 0.16pershareayearago,indicatinganearningssurpriseof−800.16 per share a year ago, indicating an earnings surprise of -80% [1] - The company posted revenues of 82.78 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 7.11%, but showing significant growth from year-ago revenues of 35.09million[2]−Overthelastfourquarters,CanaanhassurpassedconsensusEPSestimatesjustonce,whileithastoppedconsensusrevenueestimatesthreetimes[2]StockOutlook−Canaanshareshavelostabout6035.09 million [2] - Over the last four quarters, Canaan has surpassed consensus EPS estimates just once, while it has topped consensus revenue estimates three times [2] Stock Outlook - Canaan shares have lost about 60% since the beginning of the year, contrasting with the S&P 500's gain of 1.4% [3] - The current consensus EPS estimate for the coming quarter is -0.08 on revenues of 134.65million,withabreakevenestimateonrevenuesof134.65 million, with a breakeven estimate on revenues of 664.2 million for the current fiscal year [7] - The estimate revisions trend for Canaan is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the shares are expected to perform in line with the market in the near future [6] Industry Context - The Financial - Miscellaneous Services industry, to which Canaan belongs, is currently in the bottom 45% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Canaan's stock performance [5]