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

DAQO New Energy (NYSE:DQ) posted its quarterly earnings results on Thursday, August 20th. The semiconductor company reported ($1.20) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.57) by ($0.63), Zacks reports. DAQO New Energy had a negative net margin of 34.50% and a negative return on equity of 3.26%. The firm had revenue of $62.66 million for the quarter, compared to analyst estimates of $52.93 million.

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 Stock Down 3.6%

Shares of DQ stock traded down $0.38 during trading hours on Friday, reaching $10.27. The stock had a trading volume of 330,126 shares, compared to its average volume of 552,174. The firm has a 50-day simple moving average of $12.48 and a 200-day simple moving average of $15.04. DAQO New Energy has a twelve month low of $10.23 and a twelve month high of $36.59.

Analyst Upgrades and Downgrades

Several analysts have weighed in on DQ shares. JPMorgan Chase & Co. lowered their target price 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. The Goldman Sachs Group cut 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 report on Monday, August 24th. Weiss Ratings upgraded shares of DAQO New Energy from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Monday, September 14th. New Street Research set a $10.00 price target on shares of DAQO New Energy in a research report on Monday, August 24th. Finally, Zacks Research raised shares of DAQO New Energy from a “strong sell” rating to a “hold” rating in a report on Tuesday, September 29th. One analyst has rated the stock with a Buy rating, two have assigned a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Reduce” and a consensus target price of $15.83.

DAQO New Energy Company Profile

Daqo New Energy Corp. is a China-based manufacturer of high-purity polysilicon, a critical raw material used in the production of solar photovoltaic wafers, cells and modules. Through its principal operating subsidiary, Xinjiang Daqo New Energy Co, Ltd., the company produces polysilicon for the global solar industry.

The company’s products are primarily used by photovoltaic manufacturers to make monocrystalline and multicrystalline silicon wafers. Daqo operates production facilities in China, including in Xinjiang, and supplies customers in China and international markets through the solar photovoltaic manufacturing supply chain.

Daqo New Energy was established in 2008 and completed its initial public offering on the New York Stock Exchange in 2010.