DQ Earnings Prediction
The chart below shows how DQ performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DQ sees a +2.12% change in stock price 10 days leading up to the earnings, and a +4.08% change 10 days following the report. On the earnings day itself, the stock moves by -0.68%. This data can give you a slight idea of what to expect for the next quarter's release.
DQ Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
195.36M
-58.98%
-1.58%
Gross Margin
-33.41%
-282.47%
9.43%
Operating Margin
-64.14%
-466.72%
29.86%
Net Margin
-123.62%
-853.32%
218.94%
EPS
-0.54
-460.00%
200.00%
No Data Available
DQ Earnings Analysis
Daqo New Energy Corp Corporation (DQ.N) Earnings Conference Call
Positive
Polysilicon Production Achievement: Daqo New Energy achieved an annual polysilicon production volume of 205,068 metric tons in 2024, exceeding their guidance of 200,000 to 210,000 metric tons, and representing a 3.7% increase year-over-year.
N-Type Product Mix Increase: The company significantly increased its N-type product mix from approximately 40% in 2023 to 70% in 2024, indicating a shift towards higher efficiency products.
Strong Financial Position: Despite a challenging market, Daqo New Energy maintained a strong balance sheet with a cash balance of $1 billion and total quick assets of $2.2 billion, ensuring liquidity to navigate market downturns.
Cost Reduction Achievement: The company successfully reduced cash costs to $5.04 per kilogram, a 6% decline quarter-over-quarter, showcasing improved operational efficiency.
SG&A Expense Reduction: Daqo New Energy's SG&A expenses decreased to $29.4 million in Q4 2024 from $37.7 million in Q3 2024, reflecting effective cost management measures.
Record Solar PV Capacity: China's newly installed solar PV capacity reached a record high of 68 gigawatts in December 2024, exceeding expectations and reinforcing market confidence in the solar PV sector.
Solar Market Growth Strategy: The company is well-positioned to capitalize on long-term growth in the global solar PV market, focusing on enhancing its N-type technology and optimizing its cost structure through digital transformation and AI adoption.
Negative
Market Challenges in Solar PV: In 2024, the company faced a challenging market environment with excess capacity in the solar PV industry, leading to sharp price declines across the entire value chain.
Polysilicon Price Decline: Polysilicon ASP decreased significantly from $11.48 per kilogram in 2023 to $5.66 per kilogram in 2024, resulting in a revenue drop from $2.3 billion in 2023 to $1 billion in 2024.
Inventory Impairment Expense: The company recorded a non-cash provision for inventory impairment expense with a negative gross margin of 20.7% for 2024, indicating significant financial strain.
Asset Impairment Charge: A non-cash long-lived asset impairment charge of $175.6 million was recorded for the quarter related to older polysilicon production lines, reflecting ongoing operational challenges.
Utilization Rate Decline: The company operated at a lower utilization rate of 40% to 50% of nameplate capacity due to weak market prices, leading to a decrease in total production volume.
Idle Facility Costs Analysis: Idle facility related costs for the quarter were approximately $1.02 per kilogram, primarily due to non-cash depreciation expense, indicating inefficiencies in operations.
Polysilicon Production Forecast: The company anticipates a total polysilicon production volume in 2025 to be approximately 110,000 metric tons to 140,000 metric tons, a significant decrease from previous years.
Net Loss Decline: Net loss attributable to Daqo New Energy shareholders was $180 million in Q4 2024, compared to a net income of $53.3 million in Q4 2023, highlighting a drastic decline in profitability.
Severe Financial Downturn: Loss per basic ADS was $2.71 in Q4 2024, compared to earnings per basic ADS of $0.76 in Q4 2023, indicating a severe downturn in financial performance.
Net Loss Comparison: For the full year 2024, the company reported a net loss of $345 million compared to a net income of $429.5 million in 2023, showcasing a significant deterioration in financial health.
DQ FAQs
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DQ Earning Call Sentiment
Daqo New Energy Corp. (DQ) Q4 2024 Earnings Call Transcript
DQ.N
1.98%Positive
The earnings call reveals significant financial challenges, including a substantial year-over-year revenue and profit decline, with negative margins and increased losses. The Q&A section highlights uncertainties in policy interventions and market conditions, contributing to a cautious outlook. Although there are expectations for price increases and potential policy support, the overall sentiment remains negative due to weak financial performance and lack of clarity on future strategies. With a market cap of approximately $1 billion, the stock is likely to experience a negative reaction, falling between -2% and -8%.
