Canaan stock climbs after production resumes, Q1 results meet consensus

May 19, 2022 8:41 AM ETCanaan Inc. (CAN)By: Liz Kiesche, SA News Editor

Mining rig

South_agency/E+ via Getty Images

Canaan Inc. (NASDAQ:CAN) stock is surging 11% in Thursday premarket trading after the mining equipment maker and bitcoin miner said it started resuming production and delivery since the end of March.

Q1 revenue of $213.9M matched the average analyst estimate and declined from $342.8M in the previous quarter.

"The underperformance of our topline result for the quarter was anticipated, given the sudden suspension of delivery logistics during the second half of March, resulting from COVID-19 control measures in the city where our factory and warehouses are located," said Chief Financial Officer James Jin Cheng.

For Q2, Canaan (CAN) expects total net revenue of $252.4M-$283.9M vs. consensus of $276.1M.

Q1 computing power sold of 4.3M TH/s, dropped from 7.7M in Q4 2021 and increased from 2.0M in the year-ago quarter.

As of March 31, 2022, the company held cryptocurrency assets comprised of 166.96 bitcoins (BTC-USD) with carrying value of $7.1M, up from 70.5 bitcoins with carrying value of $3.2M at Dec. 31, 2021.

Q1 GAAP earnings per ADS was $0.41 matched the consensus estimate and fell from $1.07 in Q4.

Earlier, Canaan GAAP EPADS of $0.41 in-line, revenue of $213.9M in-line; issues Q2 revenue guidance

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