DAQO New Energy (NYSE:DQ) Releases Earnings Results, Misses Expectations By $1.18 EPS

DAQO New Energy (NYSE:DQ) released its quarterly earnings data on Wednesday, April 29th. The semiconductor company reported ($1.31) earnings per share for the quarter, missing the consensus estimate of ($0.13) by ($1.18), Zacks reports. The business had revenue of $26.72 million for the quarter, compared to analyst estimates of $186.28 million. DAQO New Energy had a negative return on equity of 3.19% and a negative net margin of 32.92%.

Here are the key takeaways from DAQO New Energy’s conference call:

• First-quarter results were weak, with revenue down to CNY26.7 million, a gross loss of CNY139.4 million (gross margin -521%), and a net loss attributable to shareholders of $88.4 million, driven largely by a CNY98.4 million provision for inventory impairment.
• The company has a robust liquidity position and no debt — cash and equivalents of CNY559.4 million, short-term investments CNY288.3 million, a CNY1.0 billion fixed-term deposit, and roughly $2 billion of cash-convertible assets in total.
• Operations ran above guidance with production of 43,402 metric tons (utilization ~57%) but sales were intentionally low at 4,482 tons as Daqo withheld below-cost sales while awaiting clearer government pricing enforcement.
• Management expects government action (cost-pricing recalculation and enforcement around mid-year) to curb below-cost competition and help polysilicon prices recover (company cites a potential floor in the CNY40–45/kg region), and emphasizes long-term confidence in N-type technology and cost optimization via AI.

DAQO New Energy Price Performance

Shares of NYSE DQ traded down $0.91 during midday trading on Monday, hitting $15.41. 342,443 shares of the company’s stock were exchanged, compared to its average volume of 773,238. The stock’s 50 day moving average price is $19.63 and its 200-day moving average price is $24.47. The firm has a market cap of $1.04 billion, a P/E ratio of -5.54 and a beta of 0.61. DAQO New Energy has a twelve month low of $13.60 and a twelve month high of $36.59.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. Quarry LP acquired a new stake in DAQO New Energy in the 3rd quarter valued at about $26,000. Headlands Technologies LLC bought a new stake in shares of DAQO New Energy in the 2nd quarter worth approximately $29,000. EFG International AG bought a new stake in shares of DAQO New Energy in the 4th quarter worth approximately $112,000. Brooklyn Investment Group lifted its stake in DAQO New Energy by 17,302.3% during the third quarter. Brooklyn Investment Group now owns 7,657 shares of the semiconductor company’s stock valued at $215,000 after purchasing an additional 7,613 shares during the last quarter. Finally, Vise Technologies Inc. acquired a new stake in DAQO New Energy during the third quarter valued at approximately $225,000. 47.22% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on DQ shares. Wall Street Zen downgraded DAQO New Energy from a “hold” rating to a “strong sell” rating in a research note on Saturday, May 2nd. Zacks Research downgraded DAQO New Energy from a “hold” rating to a “strong sell” rating in a report on Monday, May 4th. Roth Mkm set a $19.00 price objective on DAQO New Energy in a research report on Thursday, April 30th. Finally, Weiss Ratings upgraded DAQO New Energy from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Wednesday, May 27th. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, two have issued a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $23.59.

DAQO New Energy Company Profile

DAQO New Energy Corp. operates as a leading manufacturer of high-purity polysilicon and monocrystalline silicon wafers for the global solar photovoltaic industry. The company focuses on serving module makers and integrated solar producers with critical upstream materials, applying proprietary technologies and optimized processes to achieve high product purity and consistently low production costs. Its core offerings include solar-grade polysilicon—used in the ingot casting and wafer slicing stages—and premium mono-silicon wafers, which are a key input for high-efficiency solar cell production.

Founded in the late 2000s and listed on the New York Stock Exchange in 2010, DAQO New Energy established its first polysilicon facility in China’s Xinjiang Uygur Autonomous Region.