Daqo New Energy Stock Gains On Q2 Revenue Growth, Strong Margins

Daqo New Energy Corp DQ reported second-quarter FY21 revenue growth of 230.6% year-on-year to $441.4 million beating the analyst consensus of $407 million.
ASML Holding's ASML Q2 revenue of $4.84 billion missed the analyst consensus of $4.92 billion.
Applied Materials Inc AMAT is scheduled to report its Q3 results on Aug. 19.
Margins: The gross margin expanded 5,170 bps to 68.7% due to higher ASPs.
The EBITDA margin expanded 5,060 bps to 70.6%.
Adjusted earnings per ADS of $3.06 beat the analyst consensus of $2.54.
Daqo held $269.7 million in cash and equivalents.
The company generated $442.3 million in operating cash flow during the six months ended Jun. 30.
The global carbon neutrality goals continue to drive the polysilicon sector. The substantial increase in downstream demand-driven polysilicon crisis led to inflated ASPs.
Daqo expects the strong price momentum to continue into the second half of 2021 despite the rising solar module prices in the first half.
Outlook: Daqo raised the FY21 polysilicon production guidance from the previous level of 81,000 MT - 83,000 MT to 83,000 MT - 85,000 MT.
Price Action: DQ shares traded higher by 6.57% at $51.92 in the premarket session on the last check Wednesday.