We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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) Unit Approves Share Buyback Program
Read MoreHide Full Article
Daqo New Energy Corp. (DQ - Free Report) revealed that its subsidiary, Xinjiang Daqo New Energy Co., Ltd., has gained approval from its board of directors to initiate a share repurchase initiative. The company is a prominent manufacturer of high-purity polysilicon for the global solar PV industry.
This program allows Xinjiang Daqo to buy back RMB 200 million to RMB 400 million worth of its currently issued and outstanding shares. This repurchase will be carried out through centralized bidding transactions and remain effective until Aug 22, 2024.
The board-approved purchase price per share is set to not exceed RMB 50. This suggests that under this program, Xinjiang Daqo can repurchase less than 0.4% of the total outstanding shares.
The funding for these repurchases will come from Xinjiang Daqo's resources. The company intends to utilize the repurchased shares for its share incentive schemes, while complying with the applicable regulatory prerequisites.
Daqo New Energy's performance in the second quarter of 2023 fell short of expectations. Earnings per share were $1.34, displaying a decline from the prior-year quarter’s $8.18 and trailing the Zacks Consensus Estimate of $5.79. Revenues were recorded at $637 million, significantly below the consensus estimate of $1.218 billion. This also marked a decrease from the year-ago revenue figure of $1.244 billion. This downfall was mainly owing to lower average selling prices, which were somewhat mitigated by an increase in sales volume.
In the second quarter of 2023, Daqo New Energy’s polysilicon production volume surged 36% from the previous quarter to 45,306 metric tons (MT). This also marked an increase of 30% from the year-ago figure of 35,326 MT. The company's sales volume increased 104% from the previous quarter to 51,550 MT. The figure also reflected an increase from 37,545 MT in the year-ago quarter.
Average total production cost decreased to $6.92/kg from $7.55/kg in the previous quarter and $7.26/kg in the same quarter of the previous year. Average cash cost dropped to $6.05/kg in the second quarter from $6.61/kg in the previous quarter and $6.51/kg in the year-ago quarter. However, the polysilicon average selling price experienced a significant decline, amounting to $12.33/kg in the second quarter from $27.83/kg in the previous quarter and $33.08/kg in the same quarter of the previous year.
Shares of Daqo New Energy have lost 50.7% in the past year against a 21.6% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Daqo New Energy currently carries a Zacks Rank #5 (Strong Sell).
The earnings estimate for Carpenter Technology’s current year is pegged at $3.36, indicating year-over-year growth of 194%. CRS beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 10%. The company’s shares have rallied 48.7% in the past year.
The consensus estimate for Hawkins’ current-year earnings is pegged at $3.40, indicating year-over-year growth of 18.9%. HWKN beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 25.6%. The company’s shares have rallied 35% in the past year.
The consensus estimate for Livent’s current-year earnings is pegged at $2.12, indicating year-over-year growth of 51.4%. In the past 60 days, LTHM’s current-year earnings estimate has been revised upward by 3.4%. The company beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 19%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Daqo New Energy (DQ) Unit Approves Share Buyback Program
Daqo New Energy Corp. (DQ - Free Report) revealed that its subsidiary, Xinjiang Daqo New Energy Co., Ltd., has gained approval from its board of directors to initiate a share repurchase initiative. The company is a prominent manufacturer of high-purity polysilicon for the global solar PV industry.
This program allows Xinjiang Daqo to buy back RMB 200 million to RMB 400 million worth of its currently issued and outstanding shares. This repurchase will be carried out through centralized bidding transactions and remain effective until Aug 22, 2024.
The board-approved purchase price per share is set to not exceed RMB 50. This suggests that under this program, Xinjiang Daqo can repurchase less than 0.4% of the total outstanding shares.
The funding for these repurchases will come from Xinjiang Daqo's resources. The company intends to utilize the repurchased shares for its share incentive schemes, while complying with the applicable regulatory prerequisites.
DAQO New Energy Corp. Price and Consensus
DAQO New Energy Corp. price-consensus-chart | DAQO New Energy Corp. Quote
Daqo New Energy's performance in the second quarter of 2023 fell short of expectations. Earnings per share were $1.34, displaying a decline from the prior-year quarter’s $8.18 and trailing the Zacks Consensus Estimate of $5.79. Revenues were recorded at $637 million, significantly below the consensus estimate of $1.218 billion. This also marked a decrease from the year-ago revenue figure of $1.244 billion. This downfall was mainly owing to lower average selling prices, which were somewhat mitigated by an increase in sales volume.
In the second quarter of 2023, Daqo New Energy’s polysilicon production volume surged 36% from the previous quarter to 45,306 metric tons (MT). This also marked an increase of 30% from the year-ago figure of 35,326 MT. The company's sales volume increased 104% from the previous quarter to 51,550 MT. The figure also reflected an increase from 37,545 MT in the year-ago quarter.
Average total production cost decreased to $6.92/kg from $7.55/kg in the previous quarter and $7.26/kg in the same quarter of the previous year. Average cash cost dropped to $6.05/kg in the second quarter from $6.61/kg in the previous quarter and $6.51/kg in the year-ago quarter. However, the polysilicon average selling price experienced a significant decline, amounting to $12.33/kg in the second quarter from $27.83/kg in the previous quarter and $33.08/kg in the same quarter of the previous year.
Shares of Daqo New Energy have lost 50.7% in the past year against a 21.6% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Daqo New Energy currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the Basic Materials space are Carpenter Technology Corporation (CRS - Free Report) and Hawkins, Inc. (HWKN - Free Report) , both sporting a Zacks Rank #1 (Strong Buy), and Livent Corporation , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The earnings estimate for Carpenter Technology’s current year is pegged at $3.36, indicating year-over-year growth of 194%. CRS beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 10%. The company’s shares have rallied 48.7% in the past year.
The consensus estimate for Hawkins’ current-year earnings is pegged at $3.40, indicating year-over-year growth of 18.9%. HWKN beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 25.6%. The company’s shares have rallied 35% in the past year.
The consensus estimate for Livent’s current-year earnings is pegged at $2.12, indicating year-over-year growth of 51.4%. In the past 60 days, LTHM’s current-year earnings estimate has been revised upward by 3.4%. The company beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 19%.