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

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

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

DQ stock traded up $0.59 during midday trading on Thursday, hitting $18.09. The stock had a trading volume of 515,882 shares, compared to its average volume of 763,402. The business has a 50-day moving average of $20.89 and a two-hundred day moving average of $25.80. The firm has a market cap of $1.22 billion, a price-to-earnings ratio of -6.55 and a beta of 0.66. DAQO New Energy has a 52-week low of $12.83 and a 52-week high of $36.59.

Analyst Ratings Changes

Several analysts have recently commented on the stock. New Street Research set a $18.13 price objective on shares of DAQO New Energy in a research report on Tuesday, February 3rd. Wall Street Zen cut DAQO New Energy from a "hold" rating to a "strong sell" rating in a report on Saturday, May 2nd. Glj Research lowered DAQO New Energy from a "buy" rating to a "sell" rating and cut their target price for the stock from $30.51 to $18.13 in a research note on Tuesday, February 3rd. Weiss Ratings lowered shares of DAQO New Energy from a "sell (d-)" rating to a "sell (e+)" rating in a report on Tuesday, May 12th. Finally, Zacks Research lowered DAQO New Energy from a "hold" rating to a "strong sell" rating in a research note on Monday, May 4th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, two have given a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $23.59.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of DQ. Arrowstreet Capital Limited Partnership bought a new position in DAQO New Energy during the third quarter valued at approximately $18,280,000. Goldman Sachs Group Inc. grew its position in DAQO New Energy by 117.2% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,159,835 shares of the semiconductor company's stock worth $21,005,000 after purchasing an additional 625,900 shares during the period. Marshall Wace LLP bought a new position in DAQO New Energy in the fourth quarter valued at about $16,742,000. Millennium Management LLC lifted its holdings in DAQO New Energy by 1,261.0% in the first quarter. Millennium Management LLC now owns 354,596 shares of the semiconductor company's stock valued at $6,422,000 after acquiring an additional 328,541 shares during the period. Finally, Invesco Ltd. boosted its position in DAQO New Energy by 22.6% in the fourth quarter. Invesco Ltd. now owns 1,429,565 shares of the semiconductor company's stock worth $42,172,000 after purchasing an additional 263,614 shares during the last quarter. 47.22% of the stock is owned by hedge funds and other institutional investors.

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.