Stock Track | Daqo New Energy Plunges 5% as Q3 Losses Mount Amid Solar Market Woes

Stock Track10-31 15:26

Shares of Daqo New Energy Corp (NYSE: DQ) plunged over 5% on Tuesday, October 30th, 2024, after the polysilicon manufacturer reported dismal third-quarter results, reflecting the ongoing challenges faced by the solar industry amid weak market conditions.

In its Q3 2024 earnings release, Daqo New Energy reported a revenue decline to $198.5 million, down from $219.9 million in Q2 2024 and $484.8 million in Q3 2023. The company suffered a gross loss of $60.6 million, compared to a gross profit of $67.8 million a year earlier. The gross margin was a staggering negative 30.5%, a significant deterioration from the 14% margin recorded in Q3 2023.

The company's bottom line was equally disappointing, with a net loss of $60.7 million or $0.92 per basic ADS, compared to a loss of $6.3 million in the same period last year. Despite efforts to reduce costs, with cash costs declining to $5.34 per kilogram, Daqo New Energy still reported an operating loss of $98 million and an operating margin of negative 49%.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment