We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Daqo New Energy (DQ) to Post Q4 Earnings: What's in the Offing?
Read MoreHide Full Article
Daqo New Energy Corp. (DQ - Free Report) is slated to release fourth-quarter 2021 results before the bell on Feb 28. The company is likely to have gained from higher prices, strong demand and its efforts to lower costs in the fourth quarter.
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 an earnings surprise of 4.9%, on average. It delivered an earnings surprise of 22.5% in the last reported quarter.
The company’s shares have declined 60.1% in a year compared with the industry’s 16.1% decline.
Image Source: Zacks Investment Research
Let’s see how things have shaped up for this announcement.
What Do the Estimates Say?
The Zacks Consensus Estimate for the company’s fourth-quarter sales is currently pegged at $510.3 million, which suggests a rise of 106% from the year-ago quarter’s tally.
Some Factors at Play
Daqo New Energy’s fourth-quarter results are expected to reflect the benefits of healthy polysilicon production and sales volumes. The company is likely to have witnessed strong customer demand for high-purity polysilicon in the quarter. Higher sales volumes are likely to have supported its top line in the quarter.
Daqo New Energy is also 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 expected to have gained from its energy efficiency efforts and enhanced manufacturing efficiencies.
Polysilicon prices are likely to have been driven, in the fourth quarter, by strong downstream demand. Higher prices are expected to have boosted the company’s sales and margins in the quarter. However, the company is likely to have faced headwinds from higher silicon powder costs in the December quarter, which is expected to have raised its production costs.
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 $2.34. 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 #2.
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:
The Zacks Consensus Estimate for Sociedad Quimica’s fourth-quarter earnings has been revised 12.8% upward over the past 30 days. The consensus estimate for SQM’s earnings for the quarter stands at 97 cents.
Companhia Siderurgica Nacional (SID - Free Report) , scheduled to release earnings on Mar 9, has an Earnings ESP of +3.57% and carries a Zacks Rank #3.
The consensus estimate for Companhia Siderurgica’s fourth-quarter earnings has been stable over the past 30 days. The Zacks Consensus Estimate for SID’s earnings for the quarter stands at 28 cents.
Seabridge Gold Inc. (SA - Free Report) , expected to release earnings on Mar 23, has an Earnings ESP of +14.29% and carries a Zacks Rank #3.
The consensus estimate for Seabridge Gold’s fourth-quarter earnings has been stable in the past 30 days. The Zacks Consensus Estimate for SA’s fourth-quarter earnings is pegged at a loss of 4 cents.
Image: Bigstock
Daqo New Energy (DQ) to Post Q4 Earnings: What's in the Offing?
Daqo New Energy Corp. (DQ - Free Report) is slated to release fourth-quarter 2021 results before the bell on Feb 28. The company is likely to have gained from higher prices, strong demand and its efforts to lower costs in the fourth quarter.
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 an earnings surprise of 4.9%, on average. It delivered an earnings surprise of 22.5% in the last reported quarter.
The company’s shares have declined 60.1% in a year compared with the industry’s 16.1% decline.
Image Source: Zacks Investment Research
Let’s see how things have shaped up for this announcement.
What Do the Estimates Say?
The Zacks Consensus Estimate for the company’s fourth-quarter sales is currently pegged at $510.3 million, which suggests a rise of 106% from the year-ago quarter’s tally.
Some Factors at Play
Daqo New Energy’s fourth-quarter results are expected to reflect the benefits of healthy polysilicon production and sales volumes. The company is likely to have witnessed strong customer demand for high-purity polysilicon in the quarter. Higher sales volumes are likely to have supported its top line in the quarter.
Daqo New Energy is also 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 expected to have gained from its energy efficiency efforts and enhanced manufacturing efficiencies.
Polysilicon prices are likely to have been driven, in the fourth quarter, by strong downstream demand. Higher prices are expected to have boosted the company’s sales and margins in the quarter. However, the company is likely to have faced headwinds from higher silicon powder costs in the December quarter, which is expected to have raised its production costs.
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 $2.34. 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 #2.
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:
Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) , scheduled to release earnings on Mar 2, has an Earnings ESP of +15.68% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Sociedad Quimica’s fourth-quarter earnings has been revised 12.8% upward over the past 30 days. The consensus estimate for SQM’s earnings for the quarter stands at 97 cents.
Companhia Siderurgica Nacional (SID - Free Report) , scheduled to release earnings on Mar 9, has an Earnings ESP of +3.57% and carries a Zacks Rank #3.
The consensus estimate for Companhia Siderurgica’s fourth-quarter earnings has been stable over the past 30 days. The Zacks Consensus Estimate for SID’s earnings for the quarter stands at 28 cents.
Seabridge Gold Inc. (SA - Free Report) , expected to release earnings on Mar 23, has an Earnings ESP of +14.29% and carries a Zacks Rank #3.
The consensus estimate for Seabridge Gold’s fourth-quarter earnings has been stable in the past 30 days. The Zacks Consensus Estimate for SA’s fourth-quarter earnings is pegged at a loss of 4 cents.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.