DAQO New Energy (NYSE:DQ) Announces Earnings Results

DAQO New Energy (NYSE:DQ) released its earnings results on Thursday. The semiconductor company reported ($1.20) 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 32.92% and a negative return on equity of 3.19%. The firm had revenue of $62.66 million during the quarter, compared to the consensus estimate 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 Price Performance

DAQO New Energy stock opened at $15.00 on Friday. The business has a 50 day moving average of $13.18 and a 200-day moving average of $18.27. DAQO New Energy has a 1 year low of $11.38 and a 1 year high of $36.59. The company has a market capitalization of $1.02 billion, a P/E ratio of -5.40 and a beta of 0.66.

More DAQO New Energy News

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

• Positive Sentiment: Polysilicon sales volume rebounded sharply to 15,190 metric tons from 4,482 tons in the first quarter, helping revenue rise to $62.7 million from $26.7 million and narrowing the quarterly gross loss. Why Did Daqo New Energy Sales Volume Rebound This Quarter?
• Positive Sentiment: DAQO ended the quarter with approximately $1.92 billion in cash, investments and related liquid assets, providing financial flexibility while the company navigates the downturn. Production costs were stable at $5.95 per kilogram, while cash costs improved slightly to $4.57 per kilogram. DAQO New Energy Announces Second Quarter 2026 Results
• Neutral Sentiment: Management projects 160,000–180,000 metric tons of polysilicon production in 2026, with potential demand support from artificial-intelligence data-center construction and related power infrastructure. However, the outlook remains dependent on a recovery in market pricing. Daqo Projects 2026 Polysilicon Output
• Negative Sentiment: DAQO reported a $1.20 loss per ADS, substantially worse than analyst expectations, despite revenue exceeding estimates. The company’s net margin was negative 32.9%, and EBITDA remained negative at $29.3 million. DAQO New Energy Reports Second-Quarter Loss
• Negative Sentiment: The average selling price plunged to $4.04 per kilogram from $5.96 in the first quarter—well below the $5.95 total production cost. This drove an increase in operating losses and left the company exposed to prolonged polysilicon oversupply. DAQO New Energy Second-Quarter Earnings Call Transcript

Wall Street Analyst Weigh In

Several analysts recently issued reports on DQ shares. Zacks Research lowered shares of DAQO New Energy from a “hold” rating to a “strong sell” rating in a research report on Friday, August 7th. 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. Weiss Ratings upgraded DAQO New Energy from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Tuesday, August 11th. The Goldman Sachs Group reaffirmed a “neutral” rating and issued a $11.20 target price on shares of DAQO New Energy in a report on Monday, July 27th. Finally, JPMorgan Chase & Co. lowered their price target on DAQO New Energy from $35.50 to $22.00 and set an “overweight” rating for the company in a report on Friday, July 31st. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, two have given a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $22.35.

Hedge Funds Weigh In On DAQO New Energy

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

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.