DAQO New Energy (NYSE:DQ) Stock Price Down 4.2% on Disappointing Earnings

Key Points

• DAQO New Energy shares fell 4.2% after the company reported a quarterly loss of $0.78 per ADS, wider than the $0.48 consensus estimate and the $0.22 loss a year earlier.
• Revenue surged sequentially to $194.2 million, while polysilicon sales more than tripled and production costs improved; however, pricing remained below costs, resulting in a $60.6 million gross loss and a negative 31.2% gross margin.
• Analyst sentiment remains cautious, with the stock carrying an average “Reduce” rating and a $15.83 target price; Goldman Sachs and New Street Research each set a $10 target.

Shares of DAQO New Energy Corp. (NYSE:DQ - Get Free Report) were down 4.2% during mid-day trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $10.50 and last traded at $10.5270. Approximately 44,850 shares were traded during trading, a decline of 94% from the average daily volume of 807,795 shares. The stock had previously closed at $10.99.

The semiconductor company reported ($0.78) EPS for the quarter, missing the consensus estimate of ($0.48) by ($0.30). The company had revenue of $194.15 million for the quarter, compared to analyst estimates of $61.90 million. During the same quarter in the previous year, the company posted ($0.22) EPS.

More DAQO New Energy News

Here are the key news stories impacting DAQO New Energy this week:

• Positive Sentiment: Q3 revenue increased to $194.2 million from $62.7 million in Q2, while polysilicon sales volume more than tripled to 46,910 metric tons. The company also reduced its net loss to $52.9 million from $81.2 million, and EBITDA losses narrowed to $9.2 million from $29.3 million. Daqo New Energy Announces Unaudited Third Quarter 2026 Financial Results
• Positive Sentiment: Manufacturing efficiency improved: average total production cost declined to $5.37 per kilogram from $5.95, and cash cost fell to $4.23 per kilogram from $4.57. The company ended the quarter with approximately $2.06 billion in cash, investments and related liquid assets, up from $1.92 billion in Q2. Daqo New Energy Reports Q3 2026 Revenue Tripling to $194.2M with Improved Margins
• Neutral Sentiment: The results suggest the polysilicon downturn may be approaching a bottom, with analysts describing the sector as showing signs of stabilization. However, the recovery remains uncertain and depends on a sustained improvement in pricing and industry supply-demand conditions. Daqo narrows losses in Q3 as polysilicon sector bottoms out
• Negative Sentiment: DQ reported a loss of $0.78 per ADS, wider than the $0.48 consensus estimate and compared with a $0.22 loss a year earlier. Although revenue rebounded sequentially, it remained below the $244.6 million reported in Q3 2025. Daqo Q3 2026 Earnings Call Transcript
• Negative Sentiment: Polysilicon pricing remains uneconomic: the $4.12-per-kilogram average selling price was below the $5.37 total production cost. DQ consequently posted a $60.6 million gross loss and a negative 31.2% gross margin, indicating that oversupply continues to weigh on earnings.

Analysts Set New Price Targets

A number of brokerages have weighed in on DQ. New Street Research set a $10.00 target price on DAQO New Energy in a report on Monday, August 24th. JPMorgan Chase & Co. reduced their price objective on shares of DAQO New Energy from $35.50 to $22.00 and set an "overweight" rating for the company in a research report on Friday, July 31st. Zacks Research raised shares of DAQO New Energy from a "strong sell" rating to a "hold" rating in a research report on Tuesday, September 29th. Weiss Ratings lowered shares of DAQO New Energy from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Monday, October 19th. Finally, The Goldman Sachs Group downgraded shares of DAQO New Energy from a "neutral" rating to a "sell" rating and set a $10.00 target price on the stock. in a research report on Monday, August 24th. One equities research analyst has rated the stock with a Buy rating, one has given a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Reduce" and an average target price of $15.83.

Hedge Funds Weigh In On DAQO New Energy

Several large investors have recently bought and sold shares of DQ. Nykredit A S purchased a new position in shares of DAQO New Energy in the 2nd quarter worth approximately $28,000. Banque Cantonale Vaudoise increased its position in shares of DAQO New Energy by 37.5% during the first quarter. Banque Cantonale Vaudoise now owns 2,579 shares of the semiconductor company's stock valued at $55,000 after acquiring an additional 703 shares during the last quarter. BTG Pactual Asset Management US LLC bought a new stake in DAQO New Energy during the second quarter worth $224,000. Leonteq Securities AG lifted its holdings in DAQO New Energy by 420.2% during the first quarter. Leonteq Securities AG now owns 16,767 shares of the semiconductor company's stock worth $357,000 after acquiring an additional 13,544 shares during the period. Finally, Public Employees Retirement System of Ohio bought a new stake in DAQO New Energy during the second quarter worth $273,000. 47.22% of the stock is currently owned by institutional investors.

DAQO New Energy Price Performance

The stock has a fifty day moving average of $11.83 and a 200 day moving average of $17.33. The firm has a market capitalization of $713.88 million, a P/E ratio of -3.70 and a beta of 0.67.

DAQO New Energy Company Profile

Daqo New Energy Corp. NYSE: DQ is a China-based manufacturer of high-purity polysilicon, a key raw material used to produce solar photovoltaic wafers, cells and modules. Through its operating subsidiaries, the company produces polysilicon in grades used primarily for monocrystalline and multicrystalline solar applications.

The company's production operations are located in China, including facilities in Xinjiang. Its products are supplied to manufacturers in the solar photovoltaic industry, primarily within China's extensive solar manufacturing supply chain, with the company serving customers in other markets through industry sales and distribution relationships.

Daqo New Energy was founded in 2007 and completed its initial public offering on the New York Stock Exchange in 2010.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.