Daqo New Energy Corp. (DQ - Free Report) is slated to release second-quarter 2022 results before the bell on Aug 3.
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 2.2%, on average. It delivered an earnings surprise of 11.1% in the last reported quarter. The company is likely to have gained from higher prices, healthy demand and actions to improve efficiency in the second quarter.
The company’s shares are up 0.3% over a year compared with the industry’s 18.9% decline.
Let’s see how things are shaping up for this announcement.
What do the Estimates Say?
The Zacks Consensus Estimate for the company’s second-quarter sales is currently pegged at $1,072 million, which suggests a rise of 142.9% 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 also expected to have gained from its energy efficiency efforts and enhanced manufacturing efficiencies. Higher polysilicon sales volumes are also likely to have supported its top line.
Polysilicon prices are likely to have been driven, in the second 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 quarter. The company is also expected to have gained from lower production costs in the June quarter, aided by improved manufacturing efficiencies and lower silicon powder prices.
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 second quarter is currently pegged at $6.46. 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:
Cabot Corporation (CBT - Free Report) , slated to release earnings on Aug 8, has an Earnings ESP of +0.16% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Cabot’s fiscal third-quarter earnings has been revised 1% upward in the past 60 days. The Zacks Consensus Estimate for CBT’s earnings for the quarter is pegged at $1.53.
ATI Inc. (ATI - Free Report) , scheduled to release earnings on Aug 4, has an Earnings ESP of +0.90% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for ATI’s second-quarter earnings has been revised 17.8% upward in the past 60 days. The consensus estimate for ATI’s earnings for the quarter is currently pegged at 37 cents.
Albemarle Corporation (ALB - Free Report) , scheduled to release earnings on Aug 3, has an Earnings ESP of +8.38% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for Albemarle's second-quarter earnings has been revised 5.6% upward over the past 60 days. The consensus estimate for ALB’s earnings for the quarter is currently pegged at $3.03.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Daqo New Energy Corp. (DQ - Free Report) is slated to release second-quarter 2022 results before the bell on Aug 3.
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 2.2%, on average. It delivered an earnings surprise of 11.1% in the last reported quarter. The company is likely to have gained from higher prices, healthy demand and actions to improve efficiency in the second quarter.
The company’s shares are up 0.3% over a year compared with the industry’s 18.9% decline.
Let’s see how things are shaping up for this announcement.
What do the Estimates Say?
The Zacks Consensus Estimate for the company’s second-quarter sales is currently pegged at $1,072 million, which suggests a rise of 142.9% 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 also expected to have gained from its energy efficiency efforts and enhanced manufacturing efficiencies. Higher polysilicon sales volumes are also likely to have supported its top line.
Polysilicon prices are likely to have been driven, in the second 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 quarter. The company is also expected to have gained from lower production costs in the June quarter, aided by improved manufacturing efficiencies and lower silicon powder prices.
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 second quarter is currently pegged at $6.46. 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:
Cabot Corporation (CBT - Free Report) , slated to release earnings on Aug 8, has an Earnings ESP of +0.16% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Cabot’s fiscal third-quarter earnings has been revised 1% upward in the past 60 days. The Zacks Consensus Estimate for CBT’s earnings for the quarter is pegged at $1.53.
ATI Inc. (ATI - Free Report) , scheduled to release earnings on Aug 4, has an Earnings ESP of +0.90% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for ATI’s second-quarter earnings has been revised 17.8% upward in the past 60 days. The consensus estimate for ATI’s earnings for the quarter is currently pegged at 37 cents.
Albemarle Corporation (ALB - Free Report) , scheduled to release earnings on Aug 3, has an Earnings ESP of +8.38% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for Albemarle's second-quarter earnings has been revised 5.6% upward over the past 60 days. The consensus estimate for ALB’s earnings for the quarter is currently pegged at $3.03.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
>>Send me my free report on the top 5 EV stocks<<
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