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 Q3 Earnings: What's in Store?
Read MoreHide Full Article
Daqo New Energy Corp. (DQ - Free Report) is expected to release third-quarter 2020 results on Nov 10. Benefits of higher production volumes are likely to reflect on its results. The company is also likely to have gained from its efforts to lower costs.
The leading producer of high-purity polysilicon beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters while missed once. In this timeframe, it delivered an earnings surprise of 177.8%, on average. It also delivered an earnings surprise of 633.3% in the last reported quarter.
The company’s shares have surged 264.7% year to date compared with the industry’s 6.8% fall.
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 $124.6 million, which suggests a rise of 48.5% from the year-ago quarter’s tally.
Some Factors at Play
Daqo New Energy’s third-quarter results are expected to reflect the benefits of higher production volumes. The company, in October, noted that it completed its annual maintenance and resumed to full production in August. It produced 18,406 metric tons (MT) of polysilicon in the third quarter, surpassing the earlier guidance of 17,500-18,000 MT. The figure is also higher than 9,437 MT it registered in the third quarter of 2019 and above 18,097 MT in the sequentially prior quarter.
Daqo New Energy is also likely to have benefited from its actions to improve its cost structure. The company’s energy efficiency efforts and enhanced manufacturing efficiencies are contributing to lower costs. The company achieved a historically-lower cash cost of $4.87 per kg in second-quarter 2020. It expects cash cost of $4.88 per kg for the third quarter, which is lower than $5.85 per kg in the year-ago quarter and essentially flat sequentially.
However, the company last month said that it expects polysilicon sales volumes to external customers of 13,643 metric tons in the third quarter, down from its earlier view of 17,000-17,500 MT. The projected figure is also lower than 18,881 MT recorded in second-quarter 2020. The company saw a sharp increase in average selling prices of polysilicon since July. The significant rise in prices, particularly in September, led to postponement of purchasing orders from some customers. This is likely to have affected the company’s third-quarter performance.
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 $1.61. 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 #3.
Stocks That Warrant a Look
Here are some companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Cabot Corporation (CBT - Free Report) , scheduled to release earnings on Nov 23, has an Earnings ESP of +26.44% and carries a Zacks Rank #3.
Deere & Company (DE - Free Report) , scheduled to release earnings on Nov 25, has an Earnings ESP of +9.76% and carries a Zacks Rank #3.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Image: Bigstock
Daqo New Energy (DQ) to Post Q3 Earnings: What's in Store?
Daqo New Energy Corp. (DQ - Free Report) is expected to release third-quarter 2020 results on Nov 10. Benefits of higher production volumes are likely to reflect on its results. The company is also likely to have gained from its efforts to lower costs.
The leading producer of high-purity polysilicon beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters while missed once. In this timeframe, it delivered an earnings surprise of 177.8%, on average. It also delivered an earnings surprise of 633.3% in the last reported quarter.
The company’s shares have surged 264.7% year to date compared with the industry’s 6.8% fall.
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 $124.6 million, which suggests a rise of 48.5% from the year-ago quarter’s tally.
Some Factors at Play
Daqo New Energy’s third-quarter results are expected to reflect the benefits of higher production volumes. The company, in October, noted that it completed its annual maintenance and resumed to full production in August. It produced 18,406 metric tons (MT) of polysilicon in the third quarter, surpassing the earlier guidance of 17,500-18,000 MT. The figure is also higher than 9,437 MT it registered in the third quarter of 2019 and above 18,097 MT in the sequentially prior quarter.
Daqo New Energy is also likely to have benefited from its actions to improve its cost structure. The company’s energy efficiency efforts and enhanced manufacturing efficiencies are contributing to lower costs. The company achieved a historically-lower cash cost of $4.87 per kg in second-quarter 2020. It expects cash cost of $4.88 per kg for the third quarter, which is lower than $5.85 per kg in the year-ago quarter and essentially flat sequentially.
However, the company last month said that it expects polysilicon sales volumes to external customers of 13,643 metric tons in the third quarter, down from its earlier view of 17,000-17,500 MT. The projected figure is also lower than 18,881 MT recorded in second-quarter 2020. The company saw a sharp increase in average selling prices of polysilicon since July. The significant rise in prices, particularly in September, led to postponement of purchasing orders from some customers. This is likely to have affected the company’s third-quarter performance.
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 $1.61. 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 #3.
Stocks That Warrant a Look
Here are some companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Magna International Inc. (MGA - Free Report) , scheduled to release earnings on Nov 6, has an Earnings ESP of +1.92% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cabot Corporation (CBT - Free Report) , scheduled to release earnings on Nov 23, has an Earnings ESP of +26.44% and carries a Zacks Rank #3.
Deere & Company (DE - Free Report) , scheduled to release earnings on Nov 25, has an Earnings ESP of +9.76% and carries a Zacks Rank #3.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>