Daqo New Energy Corp. (NYSE:DQ) reported fourth-quarter financial results that fell short of analyst revenue expectations, though the company's loss was narrower than anticipated. The mixed report, covering the period ending December 31, 2025, has prompted a muted negative reaction in pre-market trading.
Earnings Miss on Revenue, Beat on Losses
The key figures from Daqo New Energy's Q4 2025 release show a clear divergence between top-line performance and bottom-line results compared to Wall Street forecasts.
- Reported Revenue: $221.7 million
- Estimated Revenue: $281.9 million
- Reported Non-GAAP EPS: -$0.11
- Estimated Non-GAAP EPS: -$0.18
While the company's loss per share of $0.11 was notably better than the expected $0.18 loss, the revenue shortfall of approximately $60 million represents a significant miss of about 21%. This indicates that while cost management or other factors may have helped curb losses, the company's sales volume or pricing power during the quarter was weaker than analysts had projected.
Market Reaction and Recent Performance
The immediate market response to the earnings release has been negative, albeit not precipitous. In pre-market trading, the stock is indicated down approximately 1.3%. This movement suggests investors are weighing the revenue miss more heavily than the earnings beat.
This pre-market dip follows a period of relative stability for the stock. Over the past month, shares have declined about 7.8%, but weekly performance was essentially flat. The reaction appears to be a direct response to the quarterly figures rather than part of a broader, ongoing sell-off.
Looking Ahead: Analyst Estimates for 2026
Beyond the reported quarter, analyst projections for Daqo New Energy point to a challenging year ahead. The estimates provided suggest continued losses, albeit potentially narrowing, as the company navigates market conditions.
- Q1 2026 Estimates: Analysts forecast a loss of $0.39 per share on revenue of approximately $193.6 million.
- Full-Year 2026 Estimates: For the entire year, the consensus estimate is for a loss of $0.91 per share on sales of about $1.14 billion.
These figures will serve as a benchmark against which the company's own guidance, if any was provided in the earnings release, can be measured. The press release announcement highlights the company's position as a leading manufacturer of high-purity polysilicon for the global solar photovoltaic industry, a sector known for its cyclicality and pricing pressures.
Press Release Summary
The company's announcement primarily served to disclose its unaudited financial results for the fourth quarter and full fiscal year 2025. As a leading polysilicon producer, the results are a closely watched indicator of supply, demand, and pricing dynamics within the solar PV supply chain. The release formally confirms the financial figures that are now driving the current market reaction.
For a detailed history of Daqo New Energy's earnings, future estimates, and analyst revisions, you can review the data here.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer to buy or sell any securities. Investing involves risk, including the potential loss of principal.
