Canaan Misses Revenue Expectations by $12.5M, GAAP EPADS of -$0.51
June 20, 2023
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CANAAN INC ($NASDAQ:CAN), a leading provider of high-performance computing solutions, announced its second quarter financial results on Wednesday, revealing a shortfall in revenue expectations by $12.5M and GAAP EPADS of -$0.51. CANAAN INC has long been seen as a leader in the industry, offering top-of-the-line supercomputers and blockchain servers to customers across the globe. Investors are now left wondering how the company can rebound from this financial disappointment. With the company’s future performance now in question, CANAAN INC must now determine how to get back on track and strengthen their financial position.
Earnings
CANAAN INC recently reported its earnings for FY2022 Q4 ending December 31 2022, with total revenue of 391.93M CNY and net income loss of 438.33M CNY. These figures represent an astonishing 82.1% decrease in total revenue and a 136.6% decrease in net income compared to the same period last year. This fell drastically short of the mean analyst expectations of $12.5M and resulted in a GAAP EPADS of -$0.51.
Despite the dismal performance, CANAAN INC has made considerable strides in the last 3 years, with total revenue increasing from 38.25M CNY to 391.93M CNY. While this still falls short of expectations, it is clear that the company is working towards a more successful future.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Canaan Inc. More…
| Total Revenues | Net Income | Net Margin |
| 488.15 | -78.97 | -21.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Canaan Inc. More…
| Operations | Investing | Financing |
| -245.92 | -4.4 | -52.98 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Canaan Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 633.7 | 85.58 | 3.25 |
Key Ratios Snapshot
Some of the financial key ratios for Canaan Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 33.3% | 98.8% | -16.9% |
| FCF Margin | ROE | ROA |
| -53.2% | -8.9% | -8.2% |
Stock Price
CANAAN INC, a leading provider of blockchain-based solutions, released financials on Friday that failed to meet market expectations. As a result, the company’s stock opened at $2.4 and closed at $1.9, plunging by 26.7% from its last closing price of 2.6. Investors were clearly disappointed with the results, driving CANAAN INC’s stock price sharply lower and making it one of the biggest decliners of the day. Live Quote…
Analysis
GoodWhale has conducted an analysis of CANAAN INC‘s fundamentals, and from our Star Chart it is clear that CANAAN INC is an ‘elephant’ company, meaning it is rich in assets after deducting off liabilities. This type of company is likely to be attractive to investors who are looking for a stable and secure investment opportunity. The health score of CANAAN INC is 7/10, indicating that the company is in a good financial position and is capable of withstanding any crisis without the risk of bankruptcy. This is largely due to its strong cashflows and low debt. In terms of business fundamentals, CANAAN INC is strong in asset, growth, and profitability, however weak in dividend. This suggests that investors looking for a long-term investment opportunity may find CANAAN INC to be an attractive option. More…
Peers
Canaan Inc is a leading manufacturer of high performance computing systems. It is engaged in the research, development, manufacture and sale of bitcoin mining machines and AI hardware and software solutions. The Company has a number of competitors in the market including Lian Hong Art Co Ltd, Pixela Corp, Inventec Corp.
– Lian Hong Art Co Ltd ($TPEX:6755)
Lian Hong Art Co Ltd is a Chinese company with a market cap of 1.25 billion as of 2022. The company’s return on equity is 1.06%. The company is engaged in the business of art and antiques. It is one of the largest art and antiques dealers in China. The company has a wide variety of products, including paintings, calligraphy, ceramics, jade, and other works of art.
– Pixela Corp ($TSE:6731)
Pixela Corp is a Japanese electronics company that manufactures and sells digital cameras, camcorders, and software. The company has a market cap of 2.08B as of 2022 and a ROE of -51.73%. Pixela Corp was founded in 1981 and is headquartered in Tokyo, Japan.
– Inventec Corp ($TWSE:2356)
Inventec Corporation is a leading manufacturer of laptops, servers, and other computer hardware. The company has a market capitalization of over $81 billion and a return on equity of 10.9%. Inventec is headquartered in Taiwan and has manufacturing facilities in China, the Czech Republic, and Mexico. The company employs over 30,000 people worldwide. Inventec is a publicly traded company on the Taiwan Stock Exchange (ticker symbol: 2356).
Summary
Canaan Inc is a NASDAQ traded company involved in innovative design and manufacture of computing products for the blockchain industry. Its recently reported GAAP EPADS of -$0.51 and revenue of $55.23M missed analysts’ expectations by $12.5M. This resulted in a stock price drop on the same day. Investors should take note of the company’s consistently declining gross margins as well as the large gap between estimated and reported results. Going forward, investors should monitor Canaan Inc’s cash position and its ability to increase revenue and reduce costs.
Additionally, investors should watch for potential changes in management that could help overcome the weak performance in the past year.
