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This leading producer of high-purity polysilicon missed the Zacks Consensus Estimate for earnings in each of the trailing four quarters. In this timeframe, it delivered a negative earnings surprise of 58.7%, on average. It delivered a negative earnings surprise of 23.8% in the last reported quarter. The company is likely to have gained from higher prices, healthy demand for polysilicon and actions to improve efficiency in the first quarter.
The company’s shares are down 46.3% over a year compared with the industry’s 9.6% decline.
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 DQ’s first-quarter sales is currently pegged at $491.9 million, which suggests a decline of 30.7% from the year-ago quarter’s tally.
Some Factors at Play
Daqo New Energy is likely to have benefited from healthy demand for polysilicon, higher selling prices and its actions to improve its cost structure in the to-be-reported quarter. The company is expected to have gained from its energy efficiency efforts and enhanced manufacturing efficiencies.
Polysilicon prices are likely to have been supported, in the March quarter, by strong demand for solar energy products. The company is expected to have witnessed continued strong demand for solar PV products in the quarter. Higher polysilicon prices and DQ’s efforts to improve its cost structure are likely to have supported its margins. The company is also expected to have gained from lower production costs in the quarter, aided by improved operational efficiency in its facilities.
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 56 cents. 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 they have the right combination of elements to post an earnings beat this quarter:
The consensus estimate for IOSP’s earnings for the first quarter is currently pegged at $1.64.
Kinross Gold Corporation (KGC - Free Report) , slated to release earnings on May 7, has an Earnings ESP of +4.49% and carries a Zacks Rank #3 at present.
The consensus mark for KGC’s first-quarter earnings is currently pegged at 6 cents.
DuPont de Nemours, Inc. (DD - Free Report) , scheduled to release first-quarter earnings on May 1, has an Earnings ESP of +0.39%.
The Zacks Consensus Estimate for DD's earnings for the first quarter is currently pegged at 65 cents. DD currently carries a Zacks Rank #3.
Image: Bigstock
Daqo New Energy (DQ) to Post Q1 Earnings: What's in Store?
Daqo New Energy Corp. (DQ - Free Report) is slated to release first-quarter 2024 results before the opening bell on Apr 29.
This leading producer of high-purity polysilicon missed the Zacks Consensus Estimate for earnings in each of the trailing four quarters. In this timeframe, it delivered a negative earnings surprise of 58.7%, on average. It delivered a negative earnings surprise of 23.8% in the last reported quarter. The company is likely to have gained from higher prices, healthy demand for polysilicon and actions to improve efficiency in the first quarter.
The company’s shares are down 46.3% over a year compared with the industry’s 9.6% decline.
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 DQ’s first-quarter sales is currently pegged at $491.9 million, which suggests a decline of 30.7% from the year-ago quarter’s tally.
Some Factors at Play
Daqo New Energy is likely to have benefited from healthy demand for polysilicon, higher selling prices and its actions to improve its cost structure in the to-be-reported quarter. The company is expected to have gained from its energy efficiency efforts and enhanced manufacturing efficiencies.
Polysilicon prices are likely to have been supported, in the March quarter, by strong demand for solar energy products. The company is expected to have witnessed continued strong demand for solar PV products in the quarter. Higher polysilicon prices and DQ’s efforts to improve its cost structure are likely to have supported its margins. The company is also expected to have gained from lower production costs in the quarter, aided by improved operational efficiency in its facilities.
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 56 cents. 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 they have the right combination of elements to post an earnings beat this quarter:
Innospec Inc. (IOSP - Free Report) , scheduled to release earnings on May 9, has an Earnings ESP of +2.44% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for IOSP’s earnings for the first quarter is currently pegged at $1.64.
Kinross Gold Corporation (KGC - Free Report) , slated to release earnings on May 7, has an Earnings ESP of +4.49% and carries a Zacks Rank #3 at present.
The consensus mark for KGC’s first-quarter earnings is currently pegged at 6 cents.
DuPont de Nemours, Inc. (DD - Free Report) , scheduled to release first-quarter earnings on May 1, has an Earnings ESP of +0.39%.
The Zacks Consensus Estimate for DD's earnings for the first quarter is currently pegged at 65 cents. DD currently carries a Zacks Rank #3.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.