Daqo New Energy (NYSE: DQ) reported Q3 EPS of $2.42, $1.12 better than the analyst estimate of $1.30. Revenue for the quarter came in at $89.4 million versus the consensus estimate of $74.9 million.

Third Quarter 2017 Financial and Operating Highlights

• Polysilicon production volume of 4,940 MT in Q3 2017, compared to 4,993 MT in Q2 2017
• Polysilicon external sales volume(1) of 4,500 MT in Q3 2017, increasing from 4,497 MT in Q2 2017
• Polysilicon average total production cost(2) of $8.95/kg in Q3 2017, compared to $8.53/kg in Q2 2017
• Polysilicon average cash cost(2) of $7.16/kg in Q3 2017, compared to $6.77/kg in Q2 2017
• Average selling price (ASP) of polysilicon was $16.19/kg in Q3 2017, increasing from $13.58/kg in Q2 2017
• Solar wafer sales volume of 26.4 million pieces in Q3 2017, compared to 27.0 million pieces in Q2 2017
• Revenue of $89.4 million in Q3 2017, increasing from $76.0 million in Q2 2017
• Gross profit of $36.4 million in Q3 2017, increasing from $24.2 million in Q2 2017
• Gross margin of 40.8% in Q3 2017, increasing from 31.9% in Q2 2017
• Non-GAAP gross margin(3) of 41.3% in Q3 2017, increasing from 32.6% in Q2 2017
• EBITDA (non-GAAP)(3) of $42.3 million in Q3 2017, increasing from $29.8 million in Q2 2017
• EBITDA margin (non-GAAP)(3) of 47.4% in Q3 2017, increasing from 39.2% in Q2 2017
• Net income attributable to Daqo New Energy shareholders of $24.1 million in Q3 2017, increasing from $12.1 million in Q2 2017 and $11.2 million in Q3 2016
• Earnings per basic ADS of $2.28 in Q3 2017, increasing from $1.15 in Q2 2017 and $1.07 in Q3 2016
• Adjusted net income (non-GAAP)(3) attributable to Daqo New Energy shareholders of $25.6 million in Q3 2017, increasing from $13.8 million in Q2 2017 and $13.2 million in Q3 2016
• Adjusted earnings per basic ADS (non-GAAP)(3) of $2.42 in Q3 2017, increasing from $1.31 in Q2 2017 and $1.26 in Q3 2016

Outlook and Q4 2017 guidance

The Company continued to conduct its annual maintenance for the Xinjiang polysilicon facility in October, 2017, with some impact to production. As a result, the Company expects to produce 4,800 MT to 5,000 MT of polysilicon and sell approximately 4,300 MT to 4,500 MT to external customers during the fourth quarter of 2017. The above external sales guidance excludes shipments of polysilicon to be used internally by our Chongqing solar wafer facility, which utilizes polysilicon for its wafer manufacturing operation. Wafer sales volume is expected to be approximately 25.0 million to 25.5 million pieces in the fourth quarter of 2017.

This outlook reflects our current and preliminary view as of the date of this press release and may be subject to change. Our ability to achieve these projections is subject to risks and uncertainties. See "Safe Harbor Statement" at the end of this press release.

For earnings history and earnings-related data on Daqo New Energy (DQ) click here.