DAQO New Energy (NYSE:DQ) Posts Earnings Results, Misses Estimates By $0.63 EPS

DAQO New Energy (NYSE:DQ) issued its earnings results on Thursday. The semiconductor company reported ($1.20) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.57) by ($0.63), Zacks reports. The business had revenue of $62.66 million during the quarter, compared to analyst estimates of $52.93 million. DAQO New Energy had a negative net margin of 34.50% and a negative return on equity of 3.26%.

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

• Polysilicon pricing remained below production costs during Q2, with the average selling price falling to $4.04/kg; the company resumed sales in June and increased shipments to 15,190 metric tons from 4,482 metric tons in Q1.
• Daqo reported sequential improvement in Q2, including revenue of $62.7 million versus $26.7 million in Q1 and a narrower operating loss of $98 million versus $160.8 million, while maintaining a debt-free balance sheet and approximately $1.9 billion in readily convertible assets.
• Management expects industry anti-involution measures, price-compliance enforcement, and stricter energy-consumption standards to accelerate the exit of high-cost or inefficient capacity; it estimates effective industry capacity is already below 2 million tons and may decline further.
• Q3 polysilicon production is expected at approximately 40,000–45,000 metric tons, with full-year 2026 production guidance of 160,000–180,000 metric tons. Management expects to sell at reasonable, non-below-cost prices while prioritizing inventory reduction, but anticipates a more meaningful market improvement in 2027.
• The company is expanding into AI data-center power infrastructure through solid-state transformers, solid-state circuit breakers, energy storage, and integrated solutions, with an initial RMB 2 billion investment commitment, prototypes targeted by year-end, and initial sales expected in 2027.

DAQO New Energy Trading Down 9.0%

Shares of DAQO New Energy stock opened at $13.63 on Friday. The company’s fifty day simple moving average is $13.14 and its 200-day simple moving average is $18.24. The company has a market cap of $922.34 million, a price-to-earnings ratio of -4.80 and a beta of 0.66. DAQO New Energy has a 1 year low of $11.38 and a 1 year high of $36.59.

Institutional Trading of DAQO New Energy

A number of institutional investors and hedge funds have recently modified their holdings of DQ. Vontobel Holding Ltd. lifted its position in DAQO New Energy by 1.5% in the fourth quarter. Vontobel Holding Ltd. now owns 57,176 shares of the semiconductor company’s stock worth $1,687,000 after purchasing an additional 836 shares during the period. Quarry LP bought a new stake in DAQO New Energy in the 3rd quarter valued at $26,000. Headlands Technologies LLC bought a new stake in DAQO New Energy in the 2nd quarter valued at $29,000. Daiwa Securities Group Inc. raised its stake in shares of DAQO New Energy by 21.6% in the 4th quarter. Daiwa Securities Group Inc. now owns 16,300 shares of the semiconductor company’s stock valued at $481,000 after buying an additional 2,900 shares in the last quarter. Finally, Compound Planning Inc. raised its stake in shares of DAQO New Energy by 19.2% in the 4th quarter. Compound Planning Inc. now owns 19,518 shares of the semiconductor company’s stock valued at $576,000 after buying an additional 3,146 shares in the last quarter. 47.22% of the stock is currently owned by institutional investors.

Key DAQO New Energy News

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

• Positive Sentiment: Polysilicon sales volume recovered: Q2 sales increased to 15,190 metric tons from 4,482 metric tons in Q1, helping revenue rise to $62.7 million from $26.7 million. Why Did Daqo New Energy Sales Volume Rebound This Quarter?
• Positive Sentiment: Losses improved sequentially: Net loss narrowed to $81.2 million, or $1.20 per ADS, from $88.4 million, or $1.31 per ADS, in Q1. EBITDA also improved to negative $29.3 million from negative $83.1 million. Daqo New Energy Announces Second Quarter 2026 Financial Results
• Positive Sentiment: Strong liquidity remains a buffer: Cash, investments and related liquid assets totaled approximately $1.92 billion at quarter-end, supporting the company through the industry downturn. Daqo also expects 2026 polysilicon production of 160,000–180,000 metric tons, potentially positioning it to benefit from future solar and AI data-center-related demand. Daqo Projects 2026 Polysilicon Output
• Neutral Sentiment: Production was stable: Q2 output was 43,675 metric tons versus 43,402 metric tons in Q1, while cash production costs edged down to $4.57 per kilogram. However, the company’s total production cost remained $5.95 per kilogram. Daqo New Energy Q2 Results Presentation
• Negative Sentiment: Earnings missed sharply: Daqo reported a $1.20-per-ADS loss, worse than the roughly $0.57 consensus estimate, despite revenue exceeding expectations. Daqo Reports Q2 Loss
• Negative Sentiment: Polysilicon economics deteriorated: The average selling price fell to $4.04 per kilogram from $5.96 in Q1—well below total production cost—driving a gross loss of $82.7 million and a negative 132% gross margin. Analysts characterize the polysilicon market as increasingly oversupplied and pressured. Daqo New Energy in a Negative Polysilicon Market

Analyst Upgrades and Downgrades

DQ has been the subject of a number of research analyst reports. Wall Street Zen downgraded shares of DAQO New Energy from a “hold” rating to a “strong sell” rating in a research report on Saturday, May 2nd. The Goldman Sachs Group restated a “neutral” rating and issued a $11.20 price objective on shares of DAQO New Energy in a report on Monday, July 27th. Weiss Ratings upgraded shares of DAQO New Energy from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Tuesday, August 11th. Roth Capital set a $19.00 price target on shares of DAQO New Energy in a report on Thursday, April 30th. Finally, 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 note on Friday, July 31st. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, two have given a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat.com, DAQO New Energy has a consensus rating of “Hold” and an average price target of $22.35.

About DAQO New Energy

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.