Daqo New Energy (DQ) Stock Slides On Steep Revenue, Earnings Miss In Q1

Daqo New Energy Corp (NYSE:DQ) shares fell 13.2% to $12.85 during Tuesday’s session after the solar-grade polysilicon producer reported worse-than-expected first-quarter results, signaling possible industry struggles.

What To Know: The company posted an adjusted net loss of 80 cents per ADS, wider than analyst expectations of a 69 cent loss. Revenue dropped 70% year-over-year to $123.9 million, missing the $182.1 million consensus. The sharp decline was driven by lower sales volumes and weak pricing, amid persistent overcapacity and muted demand in the solar PV market.

Gross margin plunged to -65.8% from +17.4% a year ago, with a gross loss of $81.5 million. Polysilicon average selling prices dropped to $4.37/kg, below both production and cash costs. Despite losses, Daqo’s balance sheet shows $2.15 billion in liquid assets and no financial debt.

CEO Xiang Xu said the company ran at 33% capacity to manage inventory and mitigate low prices. Looking ahead, Daqo expects second-quarter polysilicon output of 25,000–28,000 MT. Management remains confident in long-term prospects, citing cost leadership, new technologies and China’s push for solar expansion.

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How To Buy DQ Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Daqo New Energy’s case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, DQ has a 52-week high of $30.85 and a 52-week low of $12.40.