Canaan (CAN) Reports Q1 Loss, Tops Revenue Estimates

Company Performance - Canaan reported a quarterly loss of $0.16 per share, significantly better than the Zacks Consensus Estimate of a loss of $0.60, and an improvement from a loss of $0.43 per share a year ago, representing an earnings surprise of 73.33% [1] - The company posted revenues of $35.09 million for the quarter ended March 2024, exceeding the Zacks Consensus Estimate by 16.58%, but down from $55.23 million in the same quarter last year [1] - Over the last four quarters, Canaan has surpassed consensus revenue estimates four times, but has only done so for EPS estimates once [1] Stock Performance - Canaan shares have declined approximately 49.4% since the beginning of the year, contrasting with the S&P 500's gain of 11.1% [2] - The current consensus EPS estimate for the upcoming quarter is -$0.30 on revenues of $70.2 million, and for the current fiscal year, it is -$1.35 on revenues of $294.2 million [4] Industry Outlook - The Computer - Software industry, to which Canaan belongs, is currently ranked in the top 25% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [5] - Descartes Systems, another company in the same industry, is expected to report quarterly earnings of $0.42 per share, reflecting a year-over-year increase of 23.5%, with revenues anticipated to be $150 million, up 9.8% from the previous year [5][6]