Daqo New Energy Corp. (DQ - Free Report) logged earnings of $3.03 per share for second-quarter 2021, up from 3 cents in the year-ago quarter. Earnings for the reported quarter lagged the Zacks Consensus Estimate of $3.29.
The leading producer of high-purity polysilicon registered revenues of $441.4 million for the quarter, up more than three-fold year over year. It, however, missed the Zacks Consensus Estimate of $462 million.
Sales were driven by higher year over year average selling price (“ASP”) and sales volumes. The company witnessed strong customer demand for polysilicon during the reported quarter.
Volumes and Prices
Polysilicon production volume for the second quarter was 21,102 metric tons (MT - Free Report) , up around 17% year over year. Sales volume was 21,060 MT for the quarter, up roughly 12% year over year.
Polysilicon ASP was $20.81 per kg for the reported quarter, up nearly three-fold year over year.
Financial
The company ended the quarter with cash and cash equivalents of roughly $227.1 million, up around 157% year over year. Long-term debt was roughly $70.9 million at the end of the quarter, down around 39% year over year.
Net cash provided by operating activities was $442.3 million for the six months ended Jun 30, 2021, compared with $47 million for the year-ago period.
Outlook
Moving ahead, Daqo New Energy expects to remain in full utilization in the second half of 2021 with sales volumes similar to production volumes. The company raised its full-year polysilicon production guidance to the band of 83,000-85,000 MT from the prior view of 81,000-83,000 MT. It also expects the strong pricing momentum to continue in the second half of 2021.
Price Performance
Shares of Daqo New Energy have surged 91.5% over a year compared with the industry’s rise of 21.2%.
Zacks Rank & Key Picks
Daqo New Energy currently carries a Zacks Rank #3 (Hold)
Some better-ranked stocks worth considering in the basic materials space include Nucor Corporation (NUE - Free Report) , ArcelorMittal (MT - Free Report) and AdvanSix Inc. (ASIX - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Nucor has a projected earnings growth rate of 489.2% for the current year. The company’s shares have surged around 164% in a year.
ArcelorMittal has an expected earnings growth rate of 1,731.2% for the current year. The company’s shares have shot up around 193% in the past year.
AdvanSix has an expected earnings growth rate of around 160.4% for the current year. The company’s shares have gained roughly 149% in the past year.
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Daqo New Energy Corp. (DQ - Free Report) logged earnings of $3.03 per share for second-quarter 2021, up from 3 cents in the year-ago quarter. Earnings for the reported quarter lagged the Zacks Consensus Estimate of $3.29.
The leading producer of high-purity polysilicon registered revenues of $441.4 million for the quarter, up more than three-fold year over year. It, however, missed the Zacks Consensus Estimate of $462 million.
Sales were driven by higher year over year average selling price (“ASP”) and sales volumes. The company witnessed strong customer demand for polysilicon during the reported quarter.
Volumes and Prices
Polysilicon production volume for the second quarter was 21,102 metric tons (MT - Free Report) , up around 17% year over year. Sales volume was 21,060 MT for the quarter, up roughly 12% year over year.
Polysilicon ASP was $20.81 per kg for the reported quarter, up nearly three-fold year over year.
Financial
The company ended the quarter with cash and cash equivalents of roughly $227.1 million, up around 157% year over year. Long-term debt was roughly $70.9 million at the end of the quarter, down around 39% year over year.
Net cash provided by operating activities was $442.3 million for the six months ended Jun 30, 2021, compared with $47 million for the year-ago period.
Outlook
Moving ahead, Daqo New Energy expects to remain in full utilization in the second half of 2021 with sales volumes similar to production volumes. The company raised its full-year polysilicon production guidance to the band of 83,000-85,000 MT from the prior view of 81,000-83,000 MT. It also expects the strong pricing momentum to continue in the second half of 2021.
Price Performance
Shares of Daqo New Energy have surged 91.5% over a year compared with the industry’s rise of 21.2%.
Zacks Rank & Key Picks
Daqo New Energy currently carries a Zacks Rank #3 (Hold)
Some better-ranked stocks worth considering in the basic materials space include Nucor Corporation (NUE - Free Report) , ArcelorMittal (MT - Free Report) and AdvanSix Inc. (ASIX - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Nucor has a projected earnings growth rate of 489.2% for the current year. The company’s shares have surged around 164% in a year.
ArcelorMittal has an expected earnings growth rate of 1,731.2% for the current year. The company’s shares have shot up around 193% in the past year.
AdvanSix has an expected earnings growth rate of around 160.4% for the current year. The company’s shares have gained roughly 149% in the past year.
Buy 5 Stocks BEFORE Election Day
Biden or Trump? Zacks is releasing a FREE Special Report, Profit from the 2024 Presidential Election (no matter who wins).
Since 1950, presidential election years have been strong for the market. This report names 5 timely stocks to ride the wave of electoral excitement.
They include a medical manufacturer that gained +11,000% in the last 15 years… a rental company absolutely crushing its sector… an energy powerhouse planning to grow its already large dividend by 25%... an aerospace and defense standout that just landed a potentially $80 billion contract… and a giant chipmaker building huge plants in the U.S.
Don’t Wait. Download FREE >>
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