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Daqo New Energy (DQ) Reports Q3 Loss, Tops Revenue Estimates
DQDaqo New Energy(DQ) ZACKS·2024-10-30 12:10

Company Performance - Daqo New Energy reported a quarterly loss of 0.92pershare,whichwasworsethantheZacksConsensusEstimateofalossof0.92 per share, which was worse than the Zacks Consensus Estimate of a loss of 0.80, and a significant decline from a loss of 0.09pershareayearago,indicatinganearningssurpriseof−150.09 per share a year ago, indicating an earnings surprise of -15% [1] - The company posted revenues of 198.5 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 6.20%, but this represents a decline from year-ago revenues of 484.84million[2]−DaqohasnotsurpassedconsensusEPSestimatesoverthelastfourquartersandhastoppedconsensusrevenueestimatesonlyonceduringthesameperiod[2]StockOutlook−Daqoshareshaveunderperformedthemarket,losingabout15.4484.84 million [2] - Daqo has not surpassed consensus EPS estimates over the last four quarters and has topped consensus revenue estimates only once during the same period [2] Stock Outlook - Daqo shares have underperformed the market, losing about 15.4% since the beginning of the year, while the S&P 500 has gained 22.3% [3] - The company's earnings outlook is mixed, with the current consensus EPS estimate for the coming quarter at -1.05 on revenues of 194.7million,and−194.7 million, and -3.46 on revenues of $1.11 billion for the current fiscal year [7] - The current Zacks Rank for Daqo is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Industry Context - The Chemical - Specialty industry, to which Daqo belongs, is currently ranked in the bottom 28% of over 250 Zacks industries, suggesting that the industry outlook may negatively impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could influence investor sentiment [5]