Daqo Q2 Revenue Misses by 67% as Polysilicon Prices Stay Weak
DQ is trading near its 52-week low of $11.381 (7.9% above the low).
Summary
Daqo New Energy reported Q2 revenue of $62.7M, missing consensus of $190.3M by 67%, with an adjusted net loss of $81.2M versus the $33.5M loss expected. Adjusted EBITDA swung to -$29.3M against a positive $37.2M estimate. The company resumed sales in June after initially holding back below-cost volumes, which lifted volume but crushed average selling prices. Management guided Q3 production to 40,000-45,000 MT and full-year output to 160,000-180,000 MT, while noting early signs of price recovery from new regulatory measures. This follows the June announcement of a RMB 6B investment into AI data center energy solutions, a strategic pivot that now looks even more critical given the core polysilicon business is burning cash. The stock closed at $14.05 on August 19, and this miss will likely pressure the buy-rated consensus.
At the time of this announcement, DQ was trading at $12.28 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $950.7M. The 52-week trading range was $11.38 to $36.59. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.