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

Key Points

• DA0Q New Energy sharply missed earnings and revenue expectations: the company reported EPS of ($1.31) versus consensus ($0.13) (a $1.18 miss) and revenue of $26.72M versus expected $96.89M.
• Profitability remains weak, with a negative return on equity of 3.19% and a net margin of -32.92%, signaling continued losses despite the company's scale in polysilicon and wafers.
• Shares were flat at $19.22 after the release; Wall Street consensus is a "Hold" with a $23.59 average price target amid recent downgrades and mixed analyst ratings.

DAQO New Energy (NYSE:DQ - Get Free Report) announced its earnings results on Thursday. The semiconductor company reported ($1.31) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.13) by ($1.18), Zacks reports. The company had revenue of $26.72 million for the quarter, compared to analyst estimates of $96.89 million. DAQO New Energy had a negative return on equity of 3.19% and a negative net margin of 32.92%.

DAQO New Energy Price Performance

NYSE DQ remained flat at $19.22 on Friday. The company's stock had a trading volume of 693,176 shares, compared to its average volume of 787,845. The firm has a 50-day simple moving average of $22.13 and a 200 day simple moving average of $26.57. DAQO New Energy has a 1 year low of $12.52 and a 1 year high of $36.59. The company has a market capitalization of $1.30 billion, a P/E ratio of -6.91 and a beta of 0.66.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of DQ. Quarry LP purchased a new position in DAQO New Energy in the third quarter valued at about $26,000. Headlands Technologies LLC purchased a new position in DAQO New Energy in the second quarter valued at about $29,000. EFG International AG purchased a new position in DAQO New Energy in the fourth quarter valued at about $112,000. Brooklyn Investment Group grew its stake in DAQO New Energy by 17,302.3% in 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 in the last quarter. Finally, Vise Technologies Inc. purchased a new position in DAQO New Energy in the third quarter valued at about $225,000. Hedge funds and other institutional investors own 47.22% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research analysts have recently weighed in on the company. New Street Research set a $18.13 price target on DAQO New Energy in a report on Tuesday, February 3rd. Roth Mkm set a $19.00 price target on DAQO New Energy in a report on Thursday. Weiss Ratings reiterated a "sell (d-)" rating on shares of DAQO New Energy in a report on Friday, March 27th. Finally, Glj Research downgraded DAQO New Energy from a "buy" rating to a "sell" rating and lowered their price target for the company from $30.51 to $18.13 in a report on Tuesday, February 3rd. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus 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.

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