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Daqo New Energy (DQ) to Post Q3 Earnings: What's in Store?

Zacks Equity Research
·4-min read

Daqo New Energy Corp. DQ is slated to release third-quarter 2022 results before the bell on Oct 27.

This leading producer of high-purity polysilicon beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters while missing the same once. In this timeframe, it delivered an earnings surprise of 10.8%, on average. It delivered an earnings surprise of 26.6% in the last reported quarter. The company is likely to have gained from higher prices, healthy demand and actions to improve efficiency in the third quarter.

The company’s shares are down 38.1% over a year compared with the industry’s 29.2% decline.

 

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

What do the Estimates Say?

The Zacks Consensus Estimate for the company’s third-quarter sales is currently pegged at $1,105 million, which suggests a rise of 88.6% from the year-ago quarter’s tally.

Some Factors at Play

Daqo New Energy is likely to have benefited from strong demand, higher average 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 driven, in the third 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 expected to have boosted its sales and margins in the September quarter. The company is also expected to have gained from lower production costs in the third 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 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 third quarter is currently pegged at $6.87. 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:

Albemarle Corporation ALB, scheduled to release earnings on Nov 2, has an Earnings ESP of +3.64% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for Albemarle’s third-quarter earnings has been revised 1% upward in the past 60 days. The Zacks Consensus Estimate for ALB’s earnings for the quarter is pegged at $6.84.

Koppers Holdings Inc. KOP, slated to release earnings on Nov 4, has an Earnings ESP of +2.28% and carries a Zacks Rank #2.

The Zacks Consensus Estimate for Koppers’ third-quarter earnings has been revised 2.6% upward in the past 60 days. The consensus estimate for KOP’s earnings for the quarter is currently pegged at $1.17.

ATI Inc. ATI, scheduled to release earnings on Nov 2, has an Earnings ESP of +1.15%.

The Zacks Consensus Estimate for ATI's earnings for the third quarter is currently pegged at 52 cents. ATI currently carries a Zacks Rank #3.

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


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ATI Inc. (ATI) : Free Stock Analysis Report
 
Albemarle Corporation (ALB) : Free Stock Analysis Report
 
Koppers Holdings Inc. (KOP) : Free Stock Analysis Report
 
DAQO New Energy Corp. (DQ) : Free Stock Analysis Report
 
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