DAQO New Energy (NYSE:DQ) Announces Earnings Results, Misses Expectations By $0.30 EPS

DAQO New Energy (NYSE:DQ) issued its quarterly earnings results on Tuesday. The semiconductor company reported ($0.78) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.48) by ($0.30), RTT News reports. The company had revenue of $194.15 million for the quarter, compared to the consensus estimate of $61.90 million. During the same quarter in the prior year, the business earned ($0.22) earnings per share.

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

• Q3 revenue rose to $194.2 million from $62.7 million in Q2 as sales volume surged to 46,910 metric tons; the net loss narrowed to $52.9 million from $81.2 million sequentially.
• The company remained unprofitable, reporting a gross loss of $60.6 million and a gross margin of negative 31%, compared with a profit and 4% gross margin in Q3 2025.
• Daqo plans to reduce or flex production amid elevated industry inventories of roughly 700,000 metric tons, guiding Q4 production to 35,000–45,000 metric tons while targeting shipments above production to reduce inventory.
• Manufacturing improvements lowered Q3 total production cost by 9.7% sequentially to a record-low $5.37 per kilogram, while the company maintained a debt-free balance sheet and approximately $2.06 billion in readily convertible assets.
• The company is expanding into AI data-center power infrastructure, including integrated electrical equipment, with about CNY 1 billion of expected 2027 capital expenditure, potential revenue beginning in 2027, and projected gross margins of 15%–20%.

DAQO New Energy Trading Up 8.3%

Shares of DQ opened at $10.95 on Wednesday. The firm’s 50-day moving average price is $11.83 and its 200-day moving average price is $17.33. The firm has a market capitalization of $741.08 million, a price-to-earnings ratio of -3.86 and a beta of 0.67. DAQO New Energy has a 1-year low of $9.89 and a 1-year high of $36.59.

Key Headlines Impacting DAQO New Energy

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

• Positive Sentiment: Third-quarter revenue rose to $194.2 million from $62.7 million in the second quarter, while polysilicon sales increased to 46,910 metric tons from 15,190 metric tons. Gross loss narrowed to $60.6 million from $82.7 million, and EBITDA loss improved to $9.2 million from $29.3 million. Daqo New Energy Announces Unaudited Third Quarter 2026 Financial Results
• Positive Sentiment: Production efficiency improved: average total production cost declined to $5.37 per kilogram from $5.95, while the average selling price rose modestly to $4.12 per kilogram. Daqo also ended the quarter with approximately $2.06 billion in cash and investments, up from $1.92 billion. Daqo New Energy Reports Q3 2026 Revenue Tripling to $194.2M with Improved Margins
• Neutral Sentiment: Management and analysts suggested the polysilicon market may be approaching a bottom, but the recovery remains uncertain and depends on improved industry supply-demand conditions. Daqo New Energy Q3 Review
• Negative Sentiment: Daqo reported a $0.78 loss per ADS, worse than the $0.48 consensus loss, while net loss widened from $14.9 million a year earlier. Its gross margin remained deeply negative at 31.2%, and the $4.12/kg selling price was still below the $5.37/kg total production cost. Daqo Q3 2026 Earnings Call Transcript

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on DQ. Weiss Ratings lowered DAQO New Energy from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Monday, October 19th. New Street Research set a $10.00 target price on shares of DAQO New Energy in a report on Monday, August 24th. The Goldman Sachs Group downgraded DAQO New Energy from a “neutral” rating to a “sell” rating and set a $10.00 price target for the company. in a research report on Monday, August 24th. Zacks Research upgraded DAQO New Energy from a “strong sell” rating to a “hold” rating in a research report on Tuesday, September 29th. Finally, JPMorgan Chase & Co. lowered 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 report on Friday, July 31st. One investment analyst has rated the stock with a Buy rating, one has assigned a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, DAQO New Energy has an average rating of “Reduce” and an average price target of $15.83.

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.