Cango Inc ADR Down 2.52% To $1.16 After Earnings Beat

Friday, June 9, 2023 - Cango Inc ADR (CANG) reported upside earnings and downside revenues.

The consensus among analysts for Cango Inc ADR was for an earnings per share (EPS) loss of $0.00 per share. The firm was able to surpass those projections, reporting an EPS of $0.08, a positive surprise of $0.08. Profits rose 162% year-over-year after reporting an EPS loss of $0.13 per share in its year-ago quarter. The positive growth rate signals that the Consumer Cyclical company is performing well amid recent economic conditions.

Analyst projections for Cango Inc ADR revenue came in at a consensus of $81 million. First-Quarter revenues missed estimates for $79 million by $2 million (2%). The company achieved negative 36% growth year-over-year compared to the firm's revenue of $124.3 million from the year-ago quarter. The higher earnings growth relative to revenue signals Cango Inc ADR has improved its profit margin.

The stock is down 2.52% to $1.16 after the report.

Cango Inc ADR's profit margins took a hit as earnings fell at a faster pace than revenues.

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

Prior to the report, InvestorsObserver gave the stock an overall score of 18.

Cango Inc is the automotive transaction service platform in China connecting dealers, financial institutions, car buyers, and other industry participants. The services primarily consist of - automotive financing facilitation, automotive transaction facilitation, and aftermarket service facilitation. Geographically, it derives revenue from China.