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Daqo New Energy (DQ) Q1 Earnings and Sales Top Estimates

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Daqo New Energy Corp. (DQ - Free Report) logged earnings of $1.08 per share for first-quarter 2021, up from 44 cents in the year-ago quarter. Earnings for the reported quarter topped the Zacks Consensus Estimate of 89 cents.

The leading producer of high-purity polysilicon registered revenues of $256.1 million for the quarter, up roughly 52% year over year. It also surpassed the Zacks Consensus Estimate of $242.8 million.

Sales were driven by higher year over year average selling price (“ASP”) and sales volumes. The company witnessed strong customer demand for high-purity polysilicon during the reported quarter.

 

DAQO New Energy Corp. Price, Consensus and EPS Surprise

 

DAQO New Energy Corp. Price, Consensus and EPS Surprise

DAQO New Energy Corp. price-consensus-eps-surprise-chart | DAQO New Energy Corp. Quote

 

Volumes and Prices

Polysilicon production volume for the first quarter was 20,185 metric tons (MT), up around 2% year over year. Sales volume was 21,471 MT for the quarter, up around 12% year over year.

Polysilicon ASP was $11.90 per kg for the reported quarter, up around 35% year over year.

Financial

The company ended the quarter with cash and cash equivalents of roughly $167 million, a more than two-fold year over year increase. Long-term debt was roughly $100.4 million at the end of the quarter, down around 33% year over year.

Net cash provided by operating activities was $159.2 million for the first quarter, compared with $31.1 million for the year-ago quarter.

Outlook

The company expects polysilicon production volume for the second quarter to be 20,000-21,000 MT.  It also expects polysilicon sales volumes of 20,000-21,000 MT for the second quarter.

For full-year 2021, the company sees production volume in the band of 81,000-83,000 MT.

The company also expects its ASP for the second quarter to be in the range of $19-$20 per kg, reflecting an improvement compared with the first quarter.

Daqo New Energy also noted that it will remain focused on reducing cost and improving quality. It also expects to realize the benefits from the newly implemented digital manufacturing system designed to stabilize production, boost output and optimize efficiency.

Price Performance

Shares of Daqo New Energy have surged 549.1% over a year compared with the industry’s decline of 7.2%.

 

 

 

Zacks Rank & Key Picks

Daqo New Energy currently carries a Zacks Rank #2 (Buy).

Other top-ranked stocks worth considering in the basic materials space include Nucor Corporation (NUE - Free Report) , Dow Inc. (DOW - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .

Nucor has a projected earnings growth rate of 228.4% for the current year. The company’s shares have rallied around 156% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Dow has a projected earnings growth rate of 261.5% for the current year. The company’s shares have shot up around 95% in a year. It currently sports a Zacks Rank #1.

Impala Platinum has an expected earnings growth rate of 225.2% for the current fiscal. The company’s shares have surged around 172% in the past year. It currently carries a Zacks Rank #2.

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