Bottomâline comparison
Cangoâs unaudited Q2â2025 release shows revenue of $212âŻmillion, versus the $235âŻmillion consensus estimate from Streetâside analysts â a shortfall of roughly â9.8âŻ%. By contrast, the company delivered net income of $18.4âŻmillion (â$0.86âŻEPS), topping the $15.3âŻmillion consensus by +19.6âŻ%. In other words, while the topâline missed, the bottomâline beat expectations by a healthy margin.
Market and technical takeâaways
- Immediate price reaction: The earnings beat for net income, coupled with a modest topâline miss, has already pushed Cangoâs shares up â3.5âŻ% on the NYSE, trading near the $28.40 level â a key resistance line that coincides with the 50âday SMA.
- Volume & momentum: The sessionâs volume ran at 1.8Ă the average daily float, indicating strong conviction behind the move. The daily RSI is now 58, still below overbought territory, leaving room for upside.
- Trend context: On the weekly chart, Cango is in a higherâhigh / higherâlow formation and has just reclaimed the 20âweek trendline, suggesting the underlying bullish trend remains intact despite the revenue shortfall.
Actionable insight
- Shortâtoâmidâterm trade: The earnings beat on profit gives the market a âqualityâofâearningsâ narrative that could sustain further upside. A biasâlong position with a stop just below the recent low at $27.60 (â2âŻ% downside from current price) would protect against any reversal if the topâline miss spurs a pullâback.
- Riskâmanaged entry: If you prefer a more conservative stance, consider a scaled entry on the next pullâback toward the 20âweek moving average (~$27.10) and target the $30â$31 resistance zone in the next 4â6âŻweeks, which aligns with the projected upside from the earnings beat.
Overall, Cangoâs earnings beat offsets the revenue miss and sets the stage for a potential continuation of its upâtrend, provided the price remains above the key $27.60 support and the broader market environment stays supportive.