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Daqo New Energy (DQ) to Post Q4 Earnings: What's in Store?

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Daqo New Energy Corp. (DQ - Free Report) is slated to release fourth-quarter 2022 results before the bell on Feb 28.

This leading producer of high-purity polysilicon beat the Zacks Consensus Estimate for earnings in two of the trailing four quarters while missing the same twice. In this timeframe, it delivered a negative earnings surprise of 4.6%, on average. It delivered a negative earnings surprise of 39.2% 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 fourth quarter.

The company’s shares are down 7.2% over a year compared with the industry’s 12.7% decline.

 

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 fourth-quarter sales is currently pegged at $1,125 million, which suggests a rise of 184.5% 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 December quarter, by strong demand for solar energy products. The company is expected to have witnessed continued strong demand for solar PV products in China and overseas markets. Higher prices are likely to have boosted its sales and margins in the fourth quarter. The company is also expected to have gained from lower production costs in the quarter, aided by improved manufacturing efficiencies.

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 fourth quarter is currently pegged at $7.02. 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 #5 (Strong Sell).

Stocks That Warrant a Look

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

Lithium Americas Corp. (LAC - Free Report) , which is expected to release earnings on Mar 15, has an Earnings ESP of +48.68% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks Rank #1 stocks here.

The Zacks Consensus Estimate for LAC’s earnings for fourth quarter is currently pegged at a loss of 25 cents.

Eos Energy Enterprises, Inc. (EOSE - Free Report) , slated to release earnings on Feb 28, has an Earnings ESP of +4.1%.

The Zacks Consensus Estimate for Eos Energy Enterprises’ fourth-quarter earnings is currently pegged at a loss of 61 cents. EOSE currently carries a Zacks Rank #3.

Americas Gold and Silver Corporation (USAS - Free Report) , expected to release earnings on Mar 16, has an Earnings ESP of +66.7%.

The Zacks Consensus Estimate for Americas Gold and Silver’s fourth-quarter earnings is currently pegged at a loss of 2 cents. USAS currently carries a Zacks Rank #3.

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


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