Daqo New Energy's Earnings Outlook

On Tuesday, March 09, Daqo New Energy DQ will release its latest earnings report. Check out Benzinga's preview to understand the implications.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Daqo New Energy EPS is expected to be around $1.15, according to sell-side analysts. Sales will likely be near $232.16 million. In the same quarter last year, Daqo New Energy reported EPS of $1.72 on revenue of $118.92 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 33.14% decline in the company's EPS figure. Revenue would be up 95.23% from the year-ago period. The company's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

Shares of Daqo New Energy were trading at $79.73 as of March 05. Over the last 52-week period, shares are up 598.64%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Daqo New Energy is scheduled to hold the call at 08:00:00 ET and can be accessed here.