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What's in Store for Daqo New Energy's (DQ) Q1 Earnings?

·4 min read

Daqo New Energy Corp. DQ is slated to release first-quarter 2022 results before the bell on Apr 21. The company is likely to have gained from higher prices, healthy demand and its efforts to lower costs in the first quarter.

This leading producer of high-purity polysilicon beat the Zacks Consensus Estimate for earnings in two of the trailing four quarters while missed the same twice. In this timeframe, it delivered an earnings surprise of 4.7%, on average. It delivered a negative earnings surprise of 17.1% in the last reported quarter.

The company’s shares are down 37.6% over a year compared with the industry’s 14.4% decline.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research



Let’s see how things are shaping up for this announcement.

What do the Estimates Say?

The Zacks Consensus Estimate for the company’s first-quarter sales is currently pegged at $1,147 million, which suggests a rise of 347.9% from the year-ago quarter’s tally.

Some Factors at Play

Daqo New Energy is likely to have benefited from higher average selling prices and its actions to improve its cost structure in the to-be-reported quarter. The company is also expected to have gained from its energy efficiency efforts and enhanced manufacturing efficiencies.

Polysilicon prices are likely to have been driven, in the first quarter, by strong demand for solar energy products. Higher prices are expected to have boosted the company’s sales and margins in the quarter. The company is also expected to have gained from lower production costs in the March quarter, aided by improved operational efficiency in its newly-built Phase 4B facility and lower silicon powder prices.

DAQO New Energy Corp. Price and EPS Surprise

DAQO New Energy Corp. Price and EPS Surprise
DAQO New Energy Corp. Price and EPS Surprise

DAQO New Energy Corp. price-eps-surprise | DAQO New Energy Corp. Quote

Zacks Model

Our proven model does not conclusively predict an earnings beat for Daqo New Energy this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.

Earnings ESP: Earnings ESP for Daqo New Energy is 0.00%. The Zacks Consensus Estimate for earnings for the first quarter is currently pegged at $6.29. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Daqo New Energy currently carries a Zacks Rank #1.

Stocks That Warrant a Look

Here are some companies in the basic materials space you may want to consider as our model shows these have the right combination of elements to post an earnings beat this quarter:

Dow Inc. DOW, scheduled to release earnings on Apr 21, has an Earnings ESP of +5.45% and carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Dow’s first-quarter earnings has been revised 5.2% upward over the past 60 days. The Zacks Consensus Estimate for DOW’s earnings for the quarter is currently pegged at $2.02.

The Mosaic Company MOS, scheduled to release earnings on May 2, has an Earnings ESP of +0.89% and carries a Zacks Rank #1.

The Zacks Consensus Estimate for Mosaic’s first-quarter earnings has been revised 14.6% upward over the past 60 days. The Zacks Consensus Estimate for MOS’s earnings for the quarter is currently pegged at $2.44.

Cleveland-Cliffs Inc. CLF, slated to release earnings on Apr 22, has an Earnings ESP of +8.85% and carries a Zacks Rank #1.

The Zacks Consensus Estimate for Cleveland-Cliffs’ first-quarter earnings has been revised 2% upward over the past 60 days. The consensus estimate for CLF’s earnings for the first quarter stands at $1.51.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Dow Inc. (DOW) : Free Stock Analysis Report

ClevelandCliffs Inc. (CLF) : Free Stock Analysis Report

The Mosaic Company (MOS) : Free Stock Analysis Report

DAQO New Energy Corp. (DQ) : Free Stock Analysis Report

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