Canaan Slips To Loss In Q1 On Weak Revenues; Sees Sequentially Higher Revenues In Q2
Canaan Inc. (CAN), a Singapore-based computing solutions provider, Thursday reported a loss for the first quarter, compared to profit for the same period last year, on lower revenues.
The first-quarter loss was $84.4 million, compared to earnings of $65.1 million last year.
Loss per ADS was $0.51, compared to earnings per ADS of $0.38 a year ago.
Adjusted loss was $71.8 million, compared to adjusted net income of $80.8 million in the same period of previous year.
Revenue decreased to $55.2 million from $201.8 million last year, particularly impacted by reduction in industry-wide selling process and unforeseen delays in payment and shipments after the series of US bank failures.
On average, three analysts polled by Thomson Reuters expected revenues of $62.43 million for the quarter. Analysts’ estimates typically exclude special items.
Looking ahead for the second quarter, the company expects total revenue to be around $72 million, taking into account the challenging market conditions across the industry.
In premarket activity, shares of Canaan were trading at $2.38, down 7.75% or $0.20 on the Nasdaq.
Big Lots Suspends Dividend – Update
While reporting financial results for the first quarter on Thursday, discount retailer Big Lots, Inc. (BIG) provided comparable sales growth guidance for the second quarter.
Given significant uncertainty in the macroeconomic environment, at this point the company is not providing formal full year guidance.
For the second quarter, the company expects comparable sales to decline in the high-teens.
On Tuesday, the company’s Board of Directors also declared a suspension of the dividend.
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Pre-market Movers: ELEV, MAX, SDA, MRVL, BMR…
The following are some of the stocks making big moves in Friday’s pre-market trading (as of 07.35 A.M. ET).
In the Green
Elevation Oncology, Inc. (ELEV) is up over 32% at $3.98.
MediaAlpha, Inc. (MAX) is up over 25% at $9.52.
Marvell Technology, Inc. (MRVL) is up over 19% at $58.87.
Arcus Biosciences, Inc. (RCUS) is up over 14% at $20.00.
PDD Holdings Inc. (PDD) is up over 13% at $68.30.
The Gap, Inc. (GPS) is up over 11% at $8.30.
Landos Biopharma, Inc. (LABP) is up over 10% at $3.44.
Workday, Inc. (WDAY) is up over 9% at $214.79.
Big Lots, Inc. (BIG) is up over 8% at $6.60.
ReShape Lifesciences Inc. (RSLS) is up over 6% at $2.63.
In the Red
SunCar Technology Group Inc. (SDA) is down over 21% at $11.80.
Beamr Imaging Ltd. (BMR) is down over 18% at $4.02.
LiqTech International, Inc. (LIQT) is down over 11% at $2.99.
TScan Therapeutics, Inc. (TCRX) is down over 10% at $2.17.
X Financial (XYF) is down over 10% at $3.18.
Ulta Beauty, Inc. (ULTA) is down over 8% at $443.03.
SEALSQ Corp (LAES) is down over 7% at $13.41.
Tingo Group, Inc. (TIO) is down over 7% at $3.50.
Hibbett, Inc. (HIBB) is down over 6% at $41.50.
Team, Inc. (TISI) is down over 5% at $6.65.
Marvel Up 18% In Pre-Market On The Back Of Quarterly Results
Shares of Marvell Technology, Inc. (MRVL) are gaining 18% on Friday morning trade after the company announced its first quarter earnings on Thursday after the bell, that beat the Street estimates. The company also expects revenue from artificial intelligence to increase this year.
Marvell is currently trading at $57.90, up 17.04 percent or $8.43, in its pre-market trading session. The stock had closed at $49.47 on Thursday’s regular trading session, up about 8%. During the past 52- week period, the shares have traded between $33.75 and $61.50.
Marvell reported a loss of $168.9 million, or $0.20 per share for the first quarter, a little wider than $166 million, or $0.20 per share in the comparable quarter last year.
However, excluding one-time items, it earned $264 million or $0.31 per share, that beat the average estimate of analysts polled by Thomson-Reuters of $0.29 per share.
Marvell also stated on Thursday that they expect the sales of AI-related products to double in the current fiscal year. Marvell’s CEO, Matt Murphy, highlighted the significance of AI as a growth driver for the company, mentioning their leading network connectivity products and emerging cloud optimized silicon platform that enable this growth.
Although Marvell’s AI initiatives are still in the early stages, the company anticipates that its AI revenue will at least double in fiscal 2024 compared to the previous year, and the company expects rapid growth in the years to come.
MingZhu Enters Share Purchase Agreement To Acquire Alliance Liquor – Quick Facts
MingZhu Logistics Holdings Limited (YGMZ) has entered into a Share Purchase Agreement to acquire 100% equity of Alliance Liquor Investment Limited. Under terms of the SPA, MingZhu shall acquire 100% of Alliance Liquor in exchange for the issuance of 4,569,095 ordinary shares of Mingzhu upon closing.
The shareholder of Alliance Liquor shall receive additional first earnout payment of $8,042,090 and second earnout payment of $8,042,090 respectively if the net income of Alliance Liquor is no lower than $2 million for fiscal 2023 and 2024 respectively.
Alliance Liquor is a liquor distributor that focuses on distributing liquor brewed in Maotai town, Guizhou. MingZhu and Alliance Liquor had previously announced that they entered into a non-binding memorandum of understanding on February 21, 2023.
Elon Musk's Neuralink Gets FDA Approval For Human Trials
Elon Musk’s brain implant firm Neuralink said it has received the approval from the U.S. Food and Drug Administration to conduct first-in-human clinical trial.
In a tweet, Neuralink said, “We are excited to share that we have received the FDA’s approval to launch our first-in-human clinical study! This is the result of incredible work by the Neuralink team in close collaboration with the FDA and represents an important first step that will one day allow our technology to help many people.”
The company, which is developing implantable brain-computer interfaces, said it is yet to open recruitment for clinical trial, and will announce more information on this soon.
Musk co-founded the neurotechnology company in 2016 to develop brain implants with hopes to help the paralyzed walk, the blind see and to help treat brain diseases like Parkinson’s, dementia and Alzheimer’s.
Since 2019, Musk was hoping that Neuralink would get FDA approval for human trials.
Previously, the FDA rejected a 2022 application to pursue human clinical trials citing major safety concerns. The agency reportedly was concerned about the device’s lithium battery, the chances for the implant’s tiny wires to migrate to other areas of the brain, and questions about removing the device without damaging brain tissue.
Since then, the company has been working to resolve concerns expressed by the FDA over the safety of the implant.
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