Canaan (NASDAQ:CAN) Releases Quarterly Earnings Results, Beats Expectations By $0.10 EPS

Key Points

• Canaan (NASDAQ:CAN) reported an earnings per share (EPS) of ($0.03), surpassing analysts' expectations of ($0.13), with revenue hitting $13.95 million compared to an estimated $13.29 million.
• The company's net margin was -77.01% and the return on equity was -96.52%, indicating significant financial challenges.
• Canaan announced a share repurchase plan, suggesting company leadership believes its stock is undervalued, with a market cap of $287.95 million.

Canaan (NASDAQ:CAN - Get Free Report) posted its quarterly earnings data on Thursday. The company reported ($0.03) EPS for the quarter, topping analysts' consensus estimates of ($0.13) by $0.10, Zacks reports. Canaan had a negative net margin of 77.01% and a negative return on equity of 92.49%. The firm had revenue of $13.95 million during the quarter, compared to analyst estimates of $13.29 million. Canaan updated its Q3 2025 guidance to EPS.

Canaan Stock Up 0.6%

Shares of CAN traded up $0.0042 during midday trading on Wednesday, reaching $0.6747. 35,276,860 shares of the stock were exchanged, compared to its average volume of 37,578,804. The company has a market cap of $251.60 million, a price-to-earnings ratio of -0.75 and a beta of 3.25. The company has a quick ratio of 1.11, a current ratio of 1.78 and a debt-to-equity ratio of 0.07. Canaan has a 12-month low of $0.5347 and a 12-month high of $3.27. The firm has a 50 day simple moving average of $0.72 and a 200-day simple moving average of $0.90.

Hedge Funds Weigh In On Canaan

An institutional investor recently raised its position in Canaan stock. Goldman Sachs Group Inc. raised its holdings in Canaan Inc. Sponsored ADR (NASDAQ:CAN - Free Report) by 52.0% in the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 587,451 shares of the company's stock after acquiring an additional 200,869 shares during the quarter. Goldman Sachs Group Inc. owned about 0.21% of Canaan worth $516,000 at the end of the most recent quarter. 70.14% of the stock is owned by institutional investors and hedge funds.

Canaan declared that its Board of Directors has authorized a stock repurchase program on Tuesday, May 27th that permits the company to repurchase $0.00 in outstanding shares. This repurchase authorization permits the company to repurchase shares of its stock through open market purchases. Shares repurchase programs are often an indication that the company's board of directors believes its stock is undervalued.

Analysts Set New Price Targets

A number of analysts have recently issued reports on CAN shares. Northland Securities started coverage on Canaan in a report on Wednesday, June 18th. They issued a "market perform" rating and a $1.50 target price for the company. Northland Capmk raised Canaan to a "hold" rating in a research report on Wednesday, June 18th. Rosenblatt Securities reduced their price objective on Canaan from $5.00 to $4.00 and set a "buy" rating for the company in a research note on Friday, August 15th. B. Riley decreased their price objective on Canaan from $3.00 to $2.00 and set a "buy" rating for the company in a research report on Thursday, July 10th. Finally, Wall Street Zen upgraded Canaan from a "sell" rating to a "hold" rating in a report on Saturday. Five investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $2.50.

Canaan Company Profile

Canaan Inc engages in the research, design, and sale of integrated circuit (IC) final mining equipment products by integrating IC products for bitcoin mining and related components in the People's Republic of China. It is also involved in the assembly and distribution of mining equipment and spare parts.