Cango (NYSE:CANG – Get Free Report) released its earnings results on Monday. The company reported ($1.99) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.90) by ($1.09), Zacks reports. Cango had a negative return on equity of 105.01% and a negative net margin of 125.53%.The firm had revenue of $50.78 million for the quarter, compared to the consensus estimate of $60.02 million.
Here are the key takeaways from Cango’s conference call:
- Revenue fell 50% sequentially to $50.8 million, including $47.4 million from Bitcoin mining, as the company reduced self-mining capacity and shifted some activity to leasing. Bitcoin production declined to 656 coins, and summer power curtailments could affect third-quarter output.
- The company reported an $81.6 million net loss, driven largely by approximately $51 million in non-cash impairment and disposal losses on older mining machines. All-in Bitcoin mining cost was $98,405 per coin, above the $73,313 cash cost excluding depreciation.
- Restructuring reduced cost of revenue excluding depreciation to $50.7 million from $99.6 million in the prior quarter, while the cash mining cost declined 35%. Management said leasing and ongoing contract negotiations should improve the cash-flow profile and reduce variable-cost exposure.
- The AI infrastructure business has moved from build-out to early commercialization after completing the Georgia site, deploying containers and GPUs, and signing its first customer contract. AI revenue is expected to begin in the third quarter, although management cautioned that the initial contribution will be modest.
- The company began using a short-term Bitcoin-denominated hedging program, with approximately $8 million outstanding at quarter-end, to reduce cash-flow sensitivity to Bitcoin prices rather than take speculative directional positions. It held 1,056 Bitcoins, approximately $23 million in cash equivalents and cryptocurrencies, and $31.2 million in long-term debt.
Cango Stock Performance
Shares of CANG stock opened at $2.37 on Tuesday. The company’s 50 day moving average price is $1.95 and its two-hundred day moving average price is $4.05. The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.00 and a current ratio of 1.00. Cango has a 52 week low of $1.36 and a 52 week high of $21.00. The company has a market capitalization of $42.11 million, a P/E ratio of -0.07 and a beta of 1.11.
Wall Street Analysts Forecast Growth
Read Our Latest Analysis on Cango
Institutional Trading of Cango
A number of institutional investors have recently modified their holdings of the company. BNP Paribas Financial Markets boosted its position in Cango by 34.5% during the 3rd quarter. BNP Paribas Financial Markets now owns 15,923 shares of the company’s stock worth $68,000 after acquiring an additional 4,082 shares during the last quarter. Jump Financial LLC bought a new stake in Cango in the second quarter valued at approximately $246,000. CI Investments Inc. lifted its holdings in Cango by 206.7% during the 4th quarter. CI Investments Inc. now owns 105,456 shares of the company’s stock valued at $158,000 after purchasing an additional 71,076 shares during the last quarter. Finally, Marshall Wace LLP acquired a new position in Cango in the 4th quarter valued at about $1,677,000. 4.22% of the stock is currently owned by institutional investors.
About Cango
Cango Inc (“Cango”) is a leading smart automotive transaction service provider in China, headquartered in Shanghai. The company operates an online‐to‐offline platform that integrates vehicle sourcing, financing, distribution and insurance, offering a comprehensive ecosystem for automakers, dealers and consumers. Leveraging big data analytics and cloud computing, Cango connects buyers and sellers through its proprietary digital infrastructure, facilitating transparent and efficient transactions across the automotive value chain.
Cango’s core offerings include auto financing solutions for new and used vehicles, extended consumer loans and wealth management products.
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