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Canaan Inc ADR Down 6.35% To $1.86 After Earnings Miss

Tuesday, February 27, 2024 10:50 AM | InvestorsObserver Analysts

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Canaan Inc ADR Down 6.35% To $1.86 After Earnings Miss

Canaan Inc - ADR (CAN) missed earnings projections on 2/27/2024 for Q4 2023.

Wall Street earnings per share (EPS) projections for Canaan Inc ADR were at a loss of $0.19 per share. The company missed those estimates with an EPS loss of $0.30 per share. The loss of $0.30 per share (which represents a -58% EPS surprise) led to the company's profits falling 0% compared to last year when the firm reported an EPS loss of $0.30 per share. The neutral in Canaan Inc ADR's annual growth rate represents how the business is performing neutrally amid recent economic conditions.

Consensus estimates for Canaan Inc ADR revenue averaged out to $34.2 million, with the business managing to beat those expectations with reported fourth-quarter revenue of $49.1 million. The $14.9 million (43%) positive revenue surprise led to negative 14% growth year-over-year as the firm reported revenue of $56.8 million in its year-ago quarter. The higher earnings growth compared to revenue points to Canaan Inc ADR improving its profit margin.

The stock is down 6.35% to $1.86 after the report.

The firm's lower revenue growth to earnings signals that the firm has been able to reduce costs and improve its profit margin overall.

The average recommendation from Wall Street analysts was a Strong Buy which may get revised based on this new data.

Trading in the five days leading up to the report earned Canaan Inc ADR a Bearish Sentiment Rank from InvestorsObserver.

Prior to the report, InvestorsObserver gave the stock an overall score of 53. Meanwhile, the average Wall Street analyst rated the stock a Strong Buy.

Canaan Inc is a developer of supercomputing chips and the manufacturer of digital blockchain computing equipment as well as the supplier of the overall scheme for computer software and hardware of digital blockchain. The equipment manufactured by Canaan is sold to many countries including China, the United States, Hong Kong, and other foreign countries. It derives a vast majority of the revenue from China. Its product includes Kanzhi Al and Avalon Mining Machine.

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