SHANGHAI - Daqo New Energy Corp. (NYSE:DQ), a leading manufacturer of high-purity polysilicon for the global solar PV industry, reported a miss in its first-quarter earnings and revenue, sending shares down 4% in premarket trading.
The company posted adjusted earnings per share (EPS) of $0.55, falling short of the analyst consensus of $0.69. Revenue for the quarter was $415.3 million, also below the expected $498.7 million.
In comparison to the same period last year, the company's revenue saw a significant decline from $709.8 million, marking a decrease of approximately 41.5%. The gross margin for the quarter stood at 17.4%, a stark contrast to the 71.4% reported in the first quarter of the previous year. The company's net income attributable to shareholders was $15.5 million, a substantial drop from $278.8 million YoY.
CEO Mr. Xiang Xu addressed the quarter's performance, noting improvements in manufacturing operations and an increase in total production volume to 62,278 metric tons (MT), which was above expectations. However, he also acknowledged the challenges faced by the solar market, with weaker-than-expected production plans downstream and significant pressure on polysilicon prices due to excess inventory and delayed orders.
Looking ahead, Daqo New Energy expects to produce between 60,000MT and 63,000MT of polysilicon in the second quarter of 2024, with a full-year projection of 280,000MT to 300,000MT. These figures are inclusive of the impact of the company's annual facility maintenance.
Despite the current market downturn, Mr. Xu remains optimistic about the company's position and its ability to navigate the cycle, citing its low production costs, high-quality N-type product, strong balance sheet, and lack of financial debt. He also highlighted the company's focus on increasing N-type production in the product mix and continued digital transformation and AI adoption to optimize cost structure.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.